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UGI unit to expand Pa. gathering system to meet growing Marcellus gas demand

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UGI unit to expand Pa. gathering system to meet growing Marcellus gas demand

UGI Corp. subsidiary UGI Energy Services LLC is set to expand the capacity of its Auburn gathering system to 620 MDth/d with the construction of two additional compressor stations in Susquehanna County and Wyoming County, Pa.

The new development project, backed by a long-term agreement, will move gas from acreage being produced by Cabot Oil & Gas Corp., according to a May 22 news release. A total capital investment of $50 million is required for the project, according to the company.

The compressor stations will increase the system's capacity by 150 MDth/d, UGI said. Deliveries are slated to commence in the fall of 2018, with the balance of capacity coming in fall of 2019.

UGI President and CEO John Walsh Jr. noted the importance of developing infrastructure to answer the growing demand for Marcellus gas.