UGI Energy Services, LLC, the midstream and energy marketing subsidiary of UGI Corporation, announced the successful completion of two previously announced midstream projects.
UGIES completed its Union Dale Pipeline project consisting of approximately six miles of 12” pipeline and two interconnection facilities. The project is a direct link between abundant and locally produced natural gas supplied by Cabot Oil & Gas Corporation (“Cabot”) to the UGI Penn Natural Gas, Inc. (“UGI PNG”) distribution system. The project is capable of delivering 100,000 dekatherms per day directly into UGI PNG.
Additionally, UGIES completed phase one of a two-phase expansion of its Auburn Gathering System with the construction of three additional compressor units at its Manning Compressor Station in Wyoming County, Pennsylvania and a new interconnection facility. The completed project adds 50,000 dekatherms per day of capacity to UGI PNG and Transcontinental Gas Pipe Line Company. Construction of phase two, including the Auburn Loop project, is expected to commence in the spring of 2015 and will add 150,000 dekatherms per day. Cabot has executed a long-term agreement for the expansion capacity.
These two projects mark a critical milestone for certain consumers served by UGI PNG. Both projects enable UGI PNG customers in the Scranton/Wilkes-Barre area to be nearly 100% directly supplied by locally-produced Marcellus shale natural gas through state-of-the-art transportation facilities built and operated by UGIES for the upcoming winter season. Customers have been realizing significant cost benefits from natural gas use since 2008 and will continue to realize added benefits through lower transportation and commodity costs offered through these projects.
John Walsh, president and chief executive officer of UGI, said, “We continue to execute on our strategy to bridge the midstream 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.”
According to Cabot spokesperson George Stark, “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.”