UGI Energy Services announced a further expansion of its Auburn Gathering System in Pennsylvania with construction of a 9-mile, 24-inch pipeline from Susquehanna County to the Manning Compressor Station in Wyoming County, along with additional compression to be installed at Manning.
The pipeline, called the Auburn Loop, will parallel the existing 12-inch Auburn I pipeline. The expanded system will increase capacity of the gathering system by 200,000 Dth/d bringing total capacity to 470,000 Dth/d. Deliveries will be available starting this fall with the balance of capacity becoming available in fall 2015.
The company also announced construction of a 6-mile, 12-inch pipeline to move locally produced natural gas to UGI Penn Natural Gas, Inc., one of UGI’s utilities in northeast Pennsylvania. Once this lateral pipeline, which will run from Clifford Township and terminate in Union Dale Borough, is placed into service, Marcellus Shale gas will be the predominant source of supply for UGI PNG customers. The Union Dale Lateral will be capable of moving up to 100,000 Dth/d with deliveries available by fall.
These new development projects will transport gas primarily from acreage being produced by Cabot Oil & Gas Corp. The projects are supported by long-term agreements and will require total capital investment of over $80 million.