A $189 million deal between Talen Energy and New Jersey Resources will convert the oil pipeline that runs through the Philadelphia suburbs to deliver natural gas to Marcus Hook, writes Andrew Maykuth for the Philadelphia Inquirer.

Talen is selling its Interstate Energy pipeline unit to New Jersey Resources subsidiary Adelphia Gateway. The 18-inch-diameter, 84-mile underground pipeline, currently delivers either oil or natural gas to two Talen power plants located in Northampton County.

Advertisement

Adelphia Gateway will convert the pipeline’s southern, 50-mile portion that transports oil north to start supplying natural gas south to customers in Chester, Delaware, and Montgomery counties.

The pipeline will connect with the Texas Eastern natural gas pipeline at the interchange near Rich Hill Road in Richland Township. It will deliver up to 250,000 cubic feet of gas every day, providing a welcome new energy source.

“Today, the Philadelphia market is constrained with limited access to affordable energy sources,” said Steve Westhoven, senior vice president of New Jersey Resources subsidiary NJR Midstream. “With the Adelphia Gateway project, we look forward to applying our market expertise to serve customers and support economic development opportunities in the region.”

Read more about the plans for the pipeline in the Philadelphia Inquirer here.