By OGJ editors
HOUSTON, Sept. 21 – Citrus Energy Corp., Castle Rock, Colo., let a contract to UGI Energy Services Inc. to gather Marcellus shale gas produced by Citrus in Wyoming County, Pa., for delivery to Tennessee Gas Pipeline Co.’s interstate pipeline in Susquehanna County, Pa.
UGI Energy will acquire and construct facilities to handle up to 120,000 dekatherms/day. The gathering system is to begin service as early as spring 2011, subject to permitting and regulatory approvals.
UGI previously announced that it plans to invest $300 million in the next 2 years on midstream projects to support gas infrastructure development in the Marcellus shale play. Among these investments are the recently announced agreement between UGI Energy Services and NiSource Gas Transmission & Storage (NGT&S) to market and develop a major pipeline project to provide Marcellus shale producers in Pennsylvania improved access to high-value markets.