Pennsylvania-based companies PennEast Pipeline and UGI Energy Services will build a 100 mile pipeline from Pennsylvania and New Jersey.
Penn will invest nearly $1 billion to build the pipeline and is splitting the costs with four other firms.
UGI is the project manager for the development of the project and will operate the pipeline.
UGI, Georgia-based AGL Resources and New Jersey-based companies NJR Pipeline Company and South Jersey Industries will partner with Penn on the project.
The pipeline will have a capacity of 1 billion cubic feet per day and is designed to provide natural gas to the equivalent of 4.7 million homes.
It will move gas produced in the Marcellus shale play that extends from New York down into the Appalachian Basin.
The pipeline will begin in Luzerne County in northeastern Pennsylvania and end at Transco’s Trenton-Woodbury interconnection in New Jersey.
“This project serves to meet that growing demand in the mid-Atlantic marketplace, while providing greater system resiliency and reliability for local utilities,” President and CEO of UGI John Walsh said.