$60 Million for 120,000-GPD Plant in Wyoming County, Near Scranton
To Effectively Double LNG Capacity of UGI Energy Services in Early 2017
UGI Energy Services has disclosed plans for a 120,000-gallon-per-day liquefied natural gas plant in the “heart of the Marcellus Shale” in Wyoming County, Pa., near Scranton.
The proposed facility will be adjacent to UGI’s Manning natural gas compression station, which processes gas from local Marcellus Shale wells. The new LNG plant will include both liquefaction and local storage, and is expected to be in full commercial operation by early 2017. “The total capital investment will be approximately $60 million,” states a release.
UGI Energy Services notes that it owns and operates the existing Temple LNG plant near Reading (also in eastern Pennsylvania) through its wholly owned UGI LNG, Inc. subsidiary. The Reading facility includes 15 million gallons of LNG storage capacity associated with its peak-shaving operations, an LNG tanker truck-loading terminal, and a liquefaction plant that has been recently expanded to produce up to 120,000 gallons of LNG per day.
Cosmodyne for Liquefaction Equipment
The proposed new facility in Wyoming County will thus effectively double UGI’s liquefaction capability while increasing its LNG supply diversity.
“Our existing LNG plant at Temple has been a highly reliable and valuable asset enabling us to provide critical natural gas supply during periods of extreme natural gas demand, as well as provide firm LNG supply to large truck fleets, such as UPS,” UGI president and CEO John Walsh said in a release.
“The new plant will allow us to expand the availability of LNG to serve growing natural gas utility peak shaving demands and emerging LNG markets,” he said.
UGI has tapped Cosmodyne for liquefaction equipment, UGI Energy Services VP Matt Dutzman told F&F.
Marine, Rail, and Mining Foreseen
According to UGI Energy Services president Brad Hall, “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.”
“We have managed our investment risk by expanding LNG capacity in stages in order to keep pace with the growing LNG market,” Hall said. “Each stage is backed by a significant level of long-term commitments from current and new customers, while still allowing for future growth.
“In addition to its long history of operating LNG assets, UGI Energy Services has one of the largest fleets of peak shaving assets in the region and one of the largest retail natural gas marketing businesses, providing it with a uniquely strong position to serve the market.”
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Source: UGI Energy Services with Fleets & Fuels follow-up