Wednesday, November 2, 2011

UGI Energy to spend $150 million building Marcellus Shale gas pipeline

SPRING TOWNSHIP, Pa. - UGI Energy Services Inc. has announced that it will spend about $150 million to build an underground pipeline to extend its reach from the Marcellus shale region of Pennsylvania.

The midstream and energy marketing unit of UGI Corp. will extend for 28 to 30 miles from its Auburn Gathering System.

The pipeline will connect the southern part of Susquehanna County and northern Wyoming County to an undetermined location and include a connection to the Transcontinental (Transco) gas pipeline.

"We'll be taking the gas to market," Terranova said. "It's a brand-new pipeline."

He said that UGI Energy will buy land along the route and will own the rights to construct and operate the pipeline on that land.

He added that the company will have to get permits wherever they are required on the state, county and local levels.

Terranova said he expects that several hundred jobs will be created between the contractors working on the pipeline and those employed by UGI. About 230 employees work at the Spring Township headquarters.

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