Pipeline

UGI is planning to build a $160m, 35-mile pipeline to deliver Marcellus Shale natural gas to a planned 1,000MW power generation facility near Shamokin Dam in Snyder County, Pennsylvania.

The 20-inch pipeline, which is expected to start services in early 2017, will have the capacity to transport 200,000 Dth per day of natural gas.

Its primary customer will be the Hummel Station power plant, which is anticipated to be operational in the second half of 2017.

The pipeline will also supply gas to distribution systems operated by UGI Penn Natural Gas and UGI Central Penn Gas.

UGI Sunbury, subsidiary of UGI Energy Services, will submit an application to the US Federal Energy Regulatory Commission for approval to build and operate the pipeline.

A joint venture of Panda Power Funds and Sunbury Generation is developing the Hummel power plant in Snyder County, Pennsylvania.

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UGI president and CEO John Walsh said: “Power generators in the Northeast and Mid-Atlantic are moving to local natural gas as the fuel of choice because it is a clean, abundant and affordable resource that reduces carbon emissions and complies with stringent air-quality rules.

“This project serves to meet the growing demand for natural gas from power generators, while providing greater system reliability and enhancing natural gas availability for our expanding customer base in communities across central and northeast Pennsylvania served by UGI Penn Natural Gas and UGI Central Penn Gas.”

Image: UGI Sunbury will submit an application to the US Federal Energy Regulatory Commission for approval to build and operate the pipeline. Photo: Courtesy of puttsk/FreeDigitalPhotos.net.