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FERC OKs 200,000-Dth/d line serving central Pa. power plant


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FERC OKs 200,000-Dth/d line serving central Pa. power plant

subsidiaryUGI Sunbury LLC receivedFERC approval to build and operate the approximately 35-mile long Sunbury naturalgas pipeline, which counts as a primary customer the 1,124-MW Hummel Station power plant in Pennsylvania.

Dependingon other regulatory approvals, UGI Energy Services expected to complete constructionof the 200,000 Dth/d Sunbury pipeline as early as November 2016. UGI Sunbury toldFERC the estimated cost of the project is $178.2 million.

Accordingto FERC, Panda Power Funds LP'sHummel Station is expected to begin commercial operations in the second half of 2017.

FERCissued a certificate of public convenience and necessity to UGI Sunbury for thepipeline on April 29. The authorization carried typical conditions relating to construction,operation and environmental protection. The project an environmental review by FERC staffin December 2015.

"TheSunbury Pipeline will establish a vital delivery link between abundant Pennsylvanianatural gas and the Hummel Station," UGICorp. President and CEO John Walsh said in a May 2 statement. "[It]is another example of UGI's efforts to bridge the infrastructure gap between low-costproducing areas of Pennsylvania and consuming areas across our region."

HummelStation is a combined-cycle, gas-fired power plant being built at the site of theclosed coal-fired Sunbury plant near Shamokin Dam in Snyder County, Pa. The Sunburypipeline will also serve homes and businesses in central Pennsylvania, as it supportsparts of the UGI Utilities Inc.distribution system along the route.

"Thenew Hummel Station promises to be one of the most efficient and economical generatingstations 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 pleasedto be part of this exciting project."

The pipelinewill consist of 20-inch diameter steel pipeline and related equipment. The pipelinebegins at receipt point connections with WilliamsPartners LP's TranscontinentalGas Pipe Line Co. LLC system and the MARC I pipeline in eastern LycomingCounty, Pa., and extends south through Montour, Northumberland and Union countiesbefore reaching the Hummel Station. (CP15-525)

UGI Sunburyis a direct, wholly owned subsidiary of UGI Energy Services and an indirect, whollyowned subsidiary of UGI Corp.