Spectra Energy has filed an application with the Federal Energy Regulatory Commission (FERC) for the expansion of its Texas Eastern Transmission and Algonquin Gas Transmission interstate pipeline systems to transport new natural gas supplies to the markets in northern New Jersey and New York City.

The $850m New Jersey-New York expansion project will eliminate existing bottlenecks in the region’s interstate transmission pipeline grid.

During the planning and construction phase of the project more than 5,200 direct and indirect jobs will be provided in and around the local host communities, according to sources at Spectra.

Additionally, regional air quality improvements from increased natural gas use will eliminate an estimated 6 million tons per year of carbon dioxide, equivalent to eliminating the emissions of more than 1 million cars.

The New Jersey-New York Project will include construction of approximately 15.5 miles of new pipeline, which will run through parts of Bayonne, Jersey City and offshore Hoboken in New Jersey, as well as parts of Staten Island and Manhattan in New York.

With a capacity of 800 million cubic feet per day of natural gas, the project is fully subscribed with commitments for firm transportation service from Chesapeake Energy Marketing, Consolidated Edison Company of New York and Statoil Natural Gas.

The estimated project is expected to be in-service in November 2013.