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    UGI expands Marcellus shale projects

    UGI Energy Services LLC

    In Pennsylvania, UGI Energy Services LLC (UGIES), a wholly owned subsidiary of UGI Corp. (NYSE: UGI), has announced the further expansion of its Auburn Gathering System with the construction of a new 9-mile 24-inch pipeline from Susquehanna County to the Manning Compressor Station in Wyoming County, along with additional compression to be installed at Manning.

    The new pipeline, called the Auburn Loop, will parallel the existing 12-inch Auburn I pipeline. The expanded system will increase the capacity of the Auburn Gathering System by approximately 200,000 dekatherms per day, bringing the total capacity of the system to 470,000 dekatherms per day. Deliveries will be available starting in the fall of 2014, with the balance of capacity becoming available in the fall of 2015.

    UGIES also announced the construction of a separate 6-mile 12-inch pipeline to move locally produced natural gas to UGI Penn Natural Gas Inc. (UGI PNG), one of UGI’s utilities in northeast Pennsylvania. Once this lateral pipeline, which will run from Clifford Township and terminate in Union Dale Borough, is placed into service, Marcellus shale gas will be the predominant source of supply for UGI PNG customers. The Union Dale Lateral will be capable of moving up to 100,000 dekatherms per day with deliveries available by the fall of 2014.

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