UGI Utilities Connects its Shale Well Distribution System

UGI_Electric_Energytodomore_rgbPennsylvania Business Daily

By Amanda Rupp

UGI Utilities, Inc., recently became the first of Pennsylvania’s natural gas utilities to connect its distribution route with the Utica Shale wells.

The direct connection runs between a Utica Shale well, two Marcellus Shale wells in northern Tioga county and a UGI pipeline.

The interconnection required that the company construct a new meter and regulator station system. The system expanded the supply of natural gas available to customers in Tioga and Potter counties. It can run approximately 14,000 dekatherms of natural gas into UGI’s pipelines daily.

The natural gas resources in these shale wells can meet the energy needs of more than 50,000 households in UGI’s service area.

“UGI continues to explore opportunities to bring affordable, local natural gas to our customers throughout Pennsylvania,” Kelly Beaver, the vice president of supply for UGI, said. “More than 70 percent of the natural gas we deliver through our system is produced in the Marcellus Shale region. We are pleased to add volumes of lower-cost Utica Shale natural gas to our portfolio as another supply source.”

The U.S. Geological Survey estimates that the Utica Shale could supply 38 trillion cubic feet of natural gas, 208 million barrels of natural gas liquids and approximately 940 million barrels of crude oil.

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