UGI Energy Services to Build LNG Plant in Northern Pennsylvania

UGI Energy Services announced plans to build an LNG production facility in northern Pennsylvania that will utilize Marcellus Shale gas and will support the growing demand for LNG in the transportation and high-horsepower markets.

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 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 of LNG per day. The total capital investment will be approximately $60 million.

UGI Energy Services, through its wholly owned subsidiary UGI LNG, Inc., currently owns and operates the Temple LNG facility located near Reading, Pennsylvania. This facility includes 15 million gallons of LNG storage capacity and a liquefaction plant that has been recently expanded to produce up to 120,000 gallons of LNG per day.

“The market for liquefied natural gas continues to grow thanks to its affordable cost and environmental benefits when compared to other petroleum products,” said Brad Hall, President of UGI Energy Services. “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.”