UGIES Files With FERC For Sunbury Pipeline In Pennsylvania

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UGI Energy Services LLC (UGIES) has submitted a pre-filing request to the Federal Energy Regulatory Commission (FERC) to approve plans to construct an approximately 35-mile pipeline to bring additional interstate natural gas supplies, potentially including supplies produced in the Marcellus and Utica shale regions, to growing natural gas markets in central Pennsylvania. There are a number of customary conditions that will need to be satisfied prior to commencement of the project, including FERC approval and execution of precedent agreements.
  The Sunbury Pipeline is designed to provide up to 200,000 Dth/d of natural gas to the central Pennsylvania area. UGIES is negotiating a precedent agreement for approximately 180,000 Dth/d of capacity with a foundation shipper, Hummel Station LLC, which is planning to construct a power plant at the existing site of the coal-fired Sunbury Generation LP facility near Shamokin Dam in Snyder County, PA. UGIES will hold an open season within the next month to solicit additional firm shippers for the project. The pipeline would begin in Lycoming County in north-central Pennsylvania and end at the proposed power plant near Shamokin Dam. The new pipeline is expected to benefit the region’s economy and create jobs. UGIES expects to invest over $150 million to build the pipeline.
  UGIES will complete preliminary engineering studies in the coming months. A formal application before FERC is expected to be filed in mid-2015 and construction of the pipeline is expected to begin in 2016.