UGI Utilities Inc. said April 7 that it has signed an agreement with Lackawanna Energy Center LLC to provide natural gas service to a proposed natural gas-fueled power facility in Jessup, Pennsylvania.
To handle this deal, UGI will upgrade 19 miles of existing pipeline and construct approximately three miles of new pipeline. These investments will provide the increased system capacity required for the facility, as well as serve future growth in the region. UGI will deliver natural gas to the facility through its infrastructure that is tied to interstate pipelines and midstream pipelines connected to local Marcellus Shale wells.
“UGI is pleased to partner with Invenergy to make this project a reality,” said Robert F. Beard, President and CEO of UGI Utilities. “We applaud Invenergy for making this significant investment in the Commonwealth of Pennsylvania, and thank them for choosing UGI Utilities as their trusted partner to supply fuel to this facility.”
Lackawanna Energy Center LLC has submitted a revised application to the Pennsylvania Department of Environmental Protection for plan approval to construct a natural gas-fired combined-cycle plant to produce a nominal 1,500 MW in Jessup Borough, Lackawanna County. The project, said the DEP in a December 2014 notice in the Pennsylvania Buletin, consists of three identical 1×1 power blocks. Each combined-cycle process block includes one combustion gas turbine and one heat recovery steam generator with duct burners with all three blocks sharing one steam turbine.
UGI Utilities is a wholly owned subsidiary of UGI Corp. (NYSE: UGI). UGI Utilities has headquarters in Reading, Pennsylvania, and serves 670,000 customers in 46 Pennsylvania counties and one county in Maryland.