UGI’s midstream and energy marketing unit UGI Energy Services and NiSource Gas Transmission and Storage (NGT&S) have recently entered into an agreement to market and develop a major pipeline project to provide Marcellus Shale producers in Pennsylvania improved access to high-value markets.

This project will be subject to approval by the Federal Energy Regulatory Commission (FERC) and is planned to be available for service in late 2012.

In addition, UGI plans to enhance the delivery options from its Meeker and Tioga storage fields located in north central Pennsylvania by drilling additional storage wells and adding dehydration and compression capacity.

UGI’s storage fields are connected to its gas utility distribution system, as well as to the Dominion Gas Transmission and Tennessee Gas Pipeline interstate pipeline systems. The proposed pipeline by NGT&S and UGI will also connect to these storage fields. This storage enhancement project is planned to be available for service in 2013.

Additional projects to construct gathering facilities and purchase gas from Marcellus producers will bring locally produced gas to Pennsylvania and interstate markets during 2012.