UGI Energy Services’ subsidiary UGI Sunbury has secured the US Federal Energy Regulatory Commission (FERC) approval to construct and operate the 35-mile long Sunbury pipeline.
The issuance of certificate of public convenience and necessity from FERC will authorise UGI to proceed with construction of the pipeline.
UGI said that the pipeline will bring new natural gas supplies to homes and businesses in central Pennsylvania.
Hummel Station, a 1,124 MW combined-cycle natural gas-fired power plant, is being built near Shamokin Dam in Snyder County and will be one of the primary end-users.
UGI president and CEO John Walsh said: “The support we’ve received from local, state and federal leadership and today’s approval by FERC enable this major step forward for a cleaner and more secure energy future in the central Susquehanna Valley and across the region.
“The Sunbury Pipeline will establish a vital delivery link between abundant Pennsylvania natural gas and the Hummel Station, and is another example of UGI’s efforts to bridge the infrastructure gap between low-cost producing areas of Pennsylvania and consuming areas across our region.”
UGI Energy Services president Brad Hall said: “The new Hummel Station promises to be one of the most efficient and economical generating stations in the country.”
The pipeline has been designed to deliver up to 200,000 Dth of natural gas per day and consists of 20-inch diameter steel pipeline and related facilities.
It will originate in eastern Lycoming County and its route extends south through Montour, Northumberland and Union counties and ends at Hummel Station.
Construction of the Sunbury pipeline is expected to be completed as early as November 2016 once all pending regulatory approvals are in place.
