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UGI Energy to build LNG facility in Pennsylvania

LNG Industry,

UGI Energy Services, a subsidiary of UGI Corporation, plans to build an LNG production facility in northern Pennsylvania that will use gas from the Marcellus Shale.

Compression station

The proposed facility will be adjacent to UGI Energy Services’ Manning natural gas compression station in Wyoming County, Pennsylvania. Natural gas will be supplied by its Auburn gathering system. The LNG plant, which will include both liquefaction and local storage, is expected to be in full commercial operation by early 2017 and have the capability of producing 120 000 gal./d of LNG. The total capital investment will be approximately US$60 million.

Temple LNG

The company, through its subsidiary UGI LNG, Inc., currently owns and operates the Temple LNG facility near Reading, Pennsylvania. This facility includes 15 million gal. of LNG storage capacity and a liquefaction plant that has been recently expanded to produce up to 120 000 gal./d of LNG. The proposed new facility in Wyoming County will double UGI’s liquefaction capability and increase its LNG supply diversity.


Commenting on the new project, John Walsh, President and CEO of UGI, said: “Our existing LNG plant at Temple has been a highly reliable and valuable asset enabling us to provide critical natural gas supply during periods of extreme natural gas demand, as well as provide firm LNG supply to large truck fleets, such as UPS. The new plant will allow us to expand the availability of LNG to serve growing natural gas utility peak shaving demands and emerging LNG markets.”

Brad Hall, President of UGI Energy Services, added: “The market for liquefied natural gas continues to grow thanks to its affordable cost and environmental benefits when compared to other petroleum products. As a result, truck fleets, oil and gas drilling rigs and remote industrial users not tied to the natural gas grid continue to switch to LNG. In the coming years, we also expect the use of LNG to increase in marine, rail, and mining applications.

“We have managed our investment risk by expanding LNG capacity in stages in order to keep pace with the growing LNG market. Each stage is backed by a significant level of long-term commitments from current and new customers, while still allowing for future growth.”

Adapted from press release by Katie Woodward

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