UGI gets FERC nod for gas pipeline to repowered Sunbury plant in Pa.

UGI Sunbury LLC, a subsidiary of UGI Energy Services LLC, said May 2 that it has received a certificate of public convenience and necessity from the Federal Energy Regulatory Commission to construct and operate the approximately 35-mile long Sunbury Pipeline, which will serve a repowered plant in Pennsylvania.

The Sunbury Pipeline will bring new natural gas supplies to homes and businesses in central Pennsylvania. One of the primary end-users is the Hummel Station, a 1,124 MW combined-cycle power plant being built at the site of the shuttered coal-fired Sunbury Generation Facility near Shamokin Dam, Snyder County, Pennsylvania.

“The support we’ve received from local, state and federal leadership and today’s approval by FERC enable this major step forward for a cleaner and more secure energy future in the central Susquehanna Valley and across the region,” said John Walsh, President and CEO of UGI Corp. “The Sunbury Pipeline will establish a vital delivery link between abundant Pennsylvania natural gas and the Hummel Station, and is another example of UGI’s efforts to bridge the infrastructure gap between low-cost producing areas of Pennsylvania and consuming areas across our region.”

“The new Hummel Station promises to be one of the most efficient and economical generating stations in the country,” said Brad Hall, President of UGI Energy Services. “That bodes well for the long term operation of this facility and UGI is pleased to be part of this exciting project.”

The pipeline, comprised of 20-inch diameter steel pipeline and related facilities, is designed to deliver up to 200,000 Dth of natural gas per day. The pipeline will originate in eastern Lycoming County and its route extends south through Montour, Northumberland and Union counties before terminating at Hummel Station in Snyder County. The pipeline also provides supply flexibility to parts of the UGI Utilities distribution system along the route.

Assuming timely receipt of all remaining necessary regulatory approvals, construction of the Sunbury Pipeline is expected to be completed as early as November 2016.

UGI Sunbury is a direct, wholly-owned subsidiary of UGI Energy Services LLC, and an indirect, wholly-owned subsidiary of UGI Corp. (NYSE: UGI).

TRC Companies Inc. (NYSE: TRR) had announced on Jan. 7 that it had completed air and water permitting for this project. Hummel Station is being developed by Panda Power Funds and Sunbury Generation LP in a joint venture. The project was financed at the end of October 2015.

When Hummel Station comes online in early 2018, the plant will supply major power markets, including Philadelphia and New York. Siemens Energy will provide the power island package and Bechtel Power Corp. will serve as the Engineering, Procurement, Construction (EPC) contractor for the 1,100+ MW Hummel Station.

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.