INVESTMENTS IN EQUITY INVESTEES

6 Months Ended

Mar. 31, 2019

Investments, All Other Investments [Abstract]

INVESTMENTS IN EQUITY INVESTEES

7. INVESTMENTS IN EQUITY INVESTEES

NJR's investments in equity method investees include the following as of:

(Thousands)	March 31, 2019		September 30, 2018
Steckman Ridge (1)	$	115,775	$	117,001
PennEast	79,428		73,865
Total	$	195,203	$	190,866

(1) Includes loans with a total outstanding principal balance of $70.4 million for both March 31, 2019 and September 30, 2018. The loans accrue interest at a variable rate that resets quarterly and are due October 1, 2023.

The Company, through its subsidiary NJR Pipeline Company, is an investor in PennEast, which is expected to construct and operate a 120-mile natural gas pipeline that will extend from northeast Pennsylvania to western New Jersey. PennEast has advised that it currently expects the pipeline to begin construction in 2020. However, construction could be delayed beyond 2020 due to factors that are beyond PennEast’s ability to control or estimate precisely, including potential delays in obtaining (or the inability to obtain) governmental and regulatory approvals and land-use rights, and unforeseen construction delays.

NJNG and Energy Services have entered into storage and park and loan agreements with Steckman Ridge. In addition, NJNG has entered into a precedent capacity agreement with PennEast. See Note 14. Related Party Transactions for more information on these intercompany transactions.