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UGI plans Marcellus natural gas link to Transco

UGI Corp. subsidiary UGI Energy Services Inc. plans to invest about $150 million to link Marcellus shale natural gas production areas in Susquehanna and Wyoming Counties, Pa., with multiple Pennsylvania and interstate markets by extending its Auburn Gathering System 30 miles from its terminus in Wyoming County, Pa., to Luzerne County, Pa. The extension will include a connection to Transcontinental Gas Pipeline. UGI expects the extension to enter service in summer 2013.

UGIES recently put the portion of its Auburn Gathering System from Wyoming County to Tennessee Gas Pipeline in Susquehanna County into service, moving gas being produced by Citrus Energy Appalachia LLC.

Citrus and UGIES executed a precedent agreement by which Citrus will anchor this 30-mile extension of the gathering system (OGJ Online, Sept 21, 2010). UGIES expects to secure additional commitments as this project develops.

UGIES owns 14.7 bcf of underground natural gas storage in north-central Pennsylvania, operates LNG and propane-air peaking plants in Pennsylvania, and is developing midstream projects in the Marcellus shale. UGIES also markets gas, electricity, and liquid fuels to 9,000 commercial and industrial customers at 30,000 locations in eight eastern states and Washington, DC, and owns electric generation assets in Pennsylvania.

Contact Christopher E. Smith at chriss@ogjonline.com.


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