UGI Energy Services, a UGI Corporation unit, said it plans to build a liquefied natural gas production facility in northern Pennsylvania that will utilize Marcellus Shale gas.
The proposed facility will be adjacent to UGI Energy Services’ Manning natural gas compression station located in Wyoming County, Pennsylvania. Natural gas will be supplied by its Auburn gathering system, which transports Marcellus Shale gas produced from local wells to major interstate pipelines serving markets in the Mid-Atlantic region, the company said in a statement.
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 gallons (or 10,000 Dekatherms) of LNG per day. The total capital investment will be approximately $60 million.
UGI Energy Services, recently expanded its existing Temple LNG plant located near Reading, Pennsylvania to produce up to 120,000 gallons of LNG per day.
The proposed new facility in Wyoming County will double UGI’s liquefaction capability and increase its LNG supply diversity.
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Image: UGI