UGI Energy Services to Build LNG Plant in Marcellus Shale Region

UGI Energy Services, which is a subsidiary of UGI Corporation, announced in May that they plan to build a liquefied natural gas (LNG) production plant in northern Pennsylvania that will use gas reserves from the Marcellus Shale. UGI Energy Services plans to seize a bigger share in the industry and expects to produce up to 120,000 gallons of liquefied natural gas a day directly from 10 million cubic feet of Marcellus Shale natural gas in the heart of Pennsylvania.  This proposed facility will cost $60 million dollars to complete and will be located next to the UGI Energy Services Manning natural gas compression station in Wyoming County, PA. UGI Energy Services also currently runs a LNG plant in Reading, Pennsylvania which has proven to be profitable.

How It Works

Liquefied natural gas is typically produced by chilling the natural gas to a temperature of 260 degrees below zero and it is then stored in  this cooled liquid state. At this new plant, UGI plans to contain this natural gas by the thousands of gallons to satisfy the high demand. Storage tanks of about 280,000 gallons will be ready for use, says Vice President of Business Development, Matthew Dutzman. LNG is going through a tremendous growth period where the demand for this natural gas is extremely high, calling for large storage production and storage methods like these. LNG is known to be cleaner-burning and cost effective compared to other forms of fuel.

Looking to the Future

This LNG plant will include both liquefaction and local storage and is expected to be fully operational as early as 2017 and have the capability of producing 120,000 gallons of liquefied natural gas per day. Brad Hall, President of UGI Energy Services, commented:

“The marker for liquefied natural gas continues to grow thanks to its affordable cost and environmental benefits when compared to other petroleum products. As a result, truck fleets, oil and gas drilling rigs and remote industrial users not tied to the natural gas grid continue to switch to LNG. In the coming years, we also expect the use of LNG to increase in marine, rail and mining applications.”

This new plant will also allow UGI Energy Services to expand its natural gas sales exponentially. They plan to reach out to emerging markets like the trucking industry and for usage by remote power-generators like gas-drilling rigs or factories. They are also working on being promoted as an alternative fuel source for trains and large cargo ships that now typically burn only diesel or coal.

The future is bright for liquefied natural gas and it’s shedding that light on much of Pennsylvania. Keep a look out for new developments from UGI Energy Solutions for updates on their LNG expansions.

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Kelsey Mulac

Kelsey was raised in Indiana, Pennsylvania and attended The Pennsylvania State University where she earned a degree in Communications. Kelsey works as the External Affairs Coordinator at Cabot where she manages external communications, including social media and community outreach projects. Prior to starting her full-time position, Kelsey worked as a summer intern for Cabot while attending Penn State.

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