Shale Gas New LNG Production Unit for Marcellus Shale Production
UGI announces plans for a new liquefied natural gas (LNG) production facility in northern Pennsylvania that will utilize Marcellus Shale gas. The proposed 120,000 gallons per day site will serve an adjacent UGI gas compression station.
Wyomissing, Pennsylvania/USA – Gas for the operation will be supplied by UGI's Auburn gathering system, which transports Marcellus Shale gas produced from local wells to major interstate pipelines serving markets in the Mid-Atlantic region. The US $ 60 million LNG plant, which will include both liquefaction and local storage, is expected to be in full commercial operation by early 2017.
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 proposed new facility in Wyoming County will effectively double UGI’s liquefaction capability and increase its LNG supply diversity.
“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,” said John Walsh, President and CEO of UGI. “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.”