UGI Energy Services Announces New Marcellus Shale Development Project

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UGI Energy Services LLC, a wholly-owned subsidiary of UGI Corp. announced the further expansion of its Auburn Gathering System with the construction of two additional compressor stations in Susquehanna  and Wyoming counties in Pennsylvania.

The expanded system will increase the capacity of the Auburn Gathering System by approximately 150,000 dekatherms per day, bringing the total capacity of the system to 620,000 dekatherms per day. Deliveries will begin in the fall of 2018 with the balance of capacity becoming available in the fall of 2019.

The new development project will transport gas from acreage being produced by Cabot Oil & Gas Corporation. The project is supported by a long-term agreement and will require a total capital investment of $50 million.

“Demand for Marcellus gas continues to grow rapidly,” said John L. Walsh, president and CEO of UGI Corporation. “Developing the infrastructure to transport this gas is critically important. This expansion will supply gas to end-users and feed new pipelines that will connect Marcellus gas to regions that have not historically benefitted from access to this clean, abundant, and inexpensive energy source.”

SOURCE – UGI Energy Services LLC

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