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UGI completes two midstream Marcellus projects

A subsidiary of UGI Corporation, UGI Energy Services, a midstream and energy marketing company, has announced the completion of two midstream projects serving the Marcellus Shale region in Pennsylvania.

One of the projects, the Union Dale Pipeline, consists of roughly six miles of 12 inch diameter pipeline and two interconnection facilities. The pipeline is a direct channel between natural gas supplied by Cabot Oil & Gas and the UGI Penn Natural Gas, Inc. distribution system. The project is capable of delivering 100,000 dekatherms (100 million cubic feet) per day into the Penn Natural Gas system.

Also recently completed is the first phase of a two-phase expansion of the company’s Auburn Gathering System. The first phase involved the construction of three additional compressor units at the Manning Compressor Station in Wyoming County, Pennsylvania, and a new interconnection facility. The project adds a capacity of 50,000 dekatherms (50 million cubic feet) per day to the Penn Natural Gas and Transcontinental Gas Pipe Line Company system. The second phase of construction, which includes the Auburn Loop Project, is anticipated to begin early 2015 and will increase carrying capacity by 150,000 dekatherms (150 million cubic feet) per day.

The new projects indicate a turning point for customers being served by UGI Penn Natural Gas. The projects will allow consumers in the Scranton and Wilkes-Barre area to be almost completely and directly supplied by shale natural gas produced in the Marcellus formation. The projects will supply natural gas to these areas for the upcoming winter and will offer customers the benefits of lower transportation and commodity costs.

UGI President and Chief Executive Officer John Walsh said in a statement, “We continue to execute on our strategy to bridge the mainstream infrastructure gap and link abundant gas supplies in the Marcellus region to Northeast and Mid-Atlantic demand markets. By completing these projects early, on-budget, and with minimal impacts to the environment and surrounding communities, we continue to demonstrate why UGI is a critical link for both producers and consumers.”

Cabot spokesman George Stark also commented, “Cabot continues to work in partnership with Pennsylvania utilities and industry to create economic opportunities throughout the Commonwealth. Cabot views the completion of these projects as significant steps forward to ensure the long-term dependability of locally produced natural gas for the Pennsylvania consumer.”

In related news, UGI: Marcellus Shale gas is hot commodity.

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