UGI Subsidiary Announces New Marcellus Shale Development Projects
VALLEY FORGE, Pa.-- UGI Energy Services, LLC (“UGIES”), a wholly-owned subsidiary of UGI Corporation (NYSE: UGI), announced May 6, the further expansion of its Auburn Gathering System with the construction of a new 9-mile 24” pipeline from Susquehanna County to the Manning Compressor Station in Wyoming County along with additional compression to be installed at Manning. The new pipeline, called the Auburn Loop, will parallel the existing 12” Auburn I pipeline. The expanded system will increase the capacity of the Auburn Gathering System by approximately 200,000 dekatherms per day, bringing the total capacity of the system to 470,000 dekatherms per day. Deliveries will be available starting in the fall of 2014 with the balance of capacity becoming available in the fall of 2015.
UGIES also announced the construction of a separate 6-mile 12” pipeline to move locally-produced natural gas to UGI Penn Natural Gas, Inc. (“UGI PNG”), one of UGI’s utilities in northeast Pennsylvania. Once this lateral pipeline, which will run from Clifford Township and terminate in Union Dale Borough, is placed into service, Marcellus Shale gas will be the predominant source of supply for UGI PNG customers. The Union Dale Lateral will be capable of moving up to 100,000 dekatherms per day with deliveries available by the fall of 2014.
These new development projects will transport gas primarily from acreage being produced by Cabot Oil & Gas Corporation. The projects are supported by long-term agreements and will require a total capital investment of over $80 million.
John Walsh, president and chief executive officer of UGI, said, “The increasing level of natural gas demand has challenged the existing natural gas infrastructure in the United States and created an ‘infrastructure gap’. The announcement of these important projects, along with UGI’s midstream investments placed into service over the past few years, is evidence that more short-haul natural gas infrastructure is required to link the Northeast and Mid-Atlantic demand markets with the abundant gas supply in the Marcellus region. Given UGI’s strategic position in the region, supplier relationships, customer base, and expertise in energy logistics, we are well positioned to play a critical role linking producers and consumers.”
About UGI Energy Services, LLC : UGI Energy Services, LLC owns approximately 15 BCF of underground natural gas storage in north-central Pennsylvania, operates peaking plants and propane terminals in Pennsylvania, markets LNG to mobile and stationary end users, and is developing midstream projects throughout the Marcellus Shale region. UGI Energy Services also markets natural gas, electricity and liquid fuels to approximately 17,000 commercial and industrial customers at approximately 41,000 locations in nine eastern states and Washington, D.C. and owns electric generation and LNG assets in Pennsylvania. To learn more about the benefits of the Auburn pipeline extension, visit http://www.auburnline.com.
About UGI Utilities : UGI Utilities, Inc. is a wholly-owned subsidiary of UGI Corporation. UGI Utilities' Gas Division now serves approximately 600,000 customers in Pennsylvania, including the cities of Allentown, Bethlehem, Easton, Harrisburg, Lancaster, Lebanon, Reading, Scranton, Wilkes-Barre and Williamsport. UGI Utilities' Electric Division serves approximately 62,000 customers in two northeastern Pennsylvania counties near Wilkes-Barre.
About UGI : UGI is a distributor and marketer of energy products and services. Through subsidiaries, UGI operates natural gas and electric utilities in Pennsylvania, distributes propane both domestically and internationally, manages midstream energy and electric generation assets in Pennsylvania, and engages in energy marketing in the Mid-Atlantic region. UGI, through subsidiaries, is the sole General Partner and owns 26% of AmeriGas Partners, L.P. (NYSE:APU), the nation's largest retail propane distributor. http://www.ugicorp.com/press-room/ugi-corporation-news/news/news-details/2014/UGI-Subsidiary-Announces-New-Marcellus-Shale-Development-Projects/default.aspx May 06, 2014