The compressor stations will be built in Susquehanna County and Wyoming County in Pennsylvania with an investment of $50m. They will add to the existing two compressors stations located in Auburn and Mehoopany along with a number of other pipeline associated facilities.
According to UGI Energy Services, the Auburn Gathering System, which runs across the Susquehanna, Wyoming, and Luzerne Counties, will increase its total capacity to 620,000 dekatherms per day following the expansion project.
UGI Energy Services said that the expansion, which is backed by a long-term agreement, will enable transportation of gas from an acreage produced by Cabot Oil & Gas.
The company, which is a wholly-owned subsidiary of UGI, said that deliveries will commence in the fall of this year with the balance of capacity to be available in the fall of 2019.
UGI president and CEO John Walsh said: “Demand for Marcellus gas continues to grow rapidly.
“Developing the infrastructure to transport this gas is critically important. This expansion will supply gas to end-users and feed new pipelines that will connect Marcellus gas to regions that have not historically benefitted from access to this clean, abundant, and inexpensive energy source.”
Currently, the 76km long Auburn Pipeline facilitates transportation service for natural gas producers, connecting their production to the interstate pipeline system. The pipeline system, with a capacity of 470,000 dekatherms per day, offers various outlets for gas, including access to the Tennessee and Transco interstate pipeline systems.
UGI Energy Services is engaged in marketing of natural gas, electricity and liquid fuels to more than 14,000 residential, commercial, and industrial customers at nearly 37,000 locations in ten eastern states and Washington, D.C.
The UGI subsidiary also owns and operates gathering systems, natural gas underground storage fields, compressor stations and peaking plants, propane terminals and others.
