UGI Energy plans gas pipeline to repowered Sunbury plant in Pa.

UGI Energy Services LLC has submitted a pre-filing request to the Federal Energy Regulatory Commission to approve plans to construct an approximately 35-mile pipeline to bring additional interstate natural gas supplies, potentially including supplies produced in the Marcellus and Utica shale regions, to growing natural gas markets in central Pennsylvania.

The Sunbury Pipeline is designed to provide up to 200,000 Dth per day of natural gas to the central Pennsylvania area. UGI is negotiating a precedent agreement for approximately 180,000 Dth/d of capacity with a foundation shipper, Hummel Station LLC, which is planning to construct a power plant at the existing site of the coal-fired Sunbury Generation LP facility near Shamokin Dam in Snyder County, Pa. UGI said Dec. 22 that it will hold an open season within the next month to solicit additional firm shippers for the project.

The pipeline would begin in Lycoming County in north-central Pennsylvania and end at the proposed power plant near Shamokin Dam. The new pipeline is expected to benefit the region’s economy and create jobs. UGI expects to invest over $150m to build the pipeline.

“We are excited about this project that will continue to expand natural gas availability in the Pennsylvania region,” said John Walsh, President and CEO of UGI Corp. “In addition to helping lower natural gas costs, we are proud that it is expected to create jobs and stimulate economic growth.”

UGIES will complete preliminary engineering studies in the coming months. A formal application before FERC is expected to be filed in mid-2015 and construction of the pipeline is expected to begin in 2016.

UGI Energy Services is a subsidiary of UGI Corp. that markets natural gas, electricity and liquid fuels to approximately 19,000 business, commercial, industrial, institutional and government customers at about 43,000 locations in nine states and Washington, D.C. In addition, it stores and delivers natural gas and generates electricity.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.