UGI plans $150 million natural gas pipeline
UGI Energy Services announced today it plans to construct a new 35-mile, 20-inch gas pipeline through north-central Pennsylvania. The so-called Sunbury Pipeline would begin in Lycoming County and end at a proposed natural gas-fired power plant near Shamokin Dam, in Snyder County.
This announcement comes amid a flurry of other pipeline projects in Pennsylvania, as energy companies work to move the abundant Marcellus Shale gas to new markets.
“We are excited about this project that will continue to expand natural gas availability in the Pennsylvania region,” said UGI President and CEO John Walsh in a statement. “In addition to helping lower natural gas costs, we are proud that it is expected to create jobs and stimulate economic growth.”
UGI has already started the pre-filing phase of the process with the Federal Energy Regulatory Commission (FERC)– the agency charged with overseeing pipelines. The company expects to file its formal application by the middle of next year.
If approved, pipeline construction would being in early 2016. The new power plant would open in 2017. UGI says it expects to invest about $150 million.
UGI says about 10 percent of the proposed route would be co-located with other utilities. Major water crossings include the Susquehanna River. Although FERC is responsible for siting pipelines, the Pennsylvania Department of Environmental Protection oversees issues related to water quality, like stream crossings and erosion and sediment control.
UGI plans to hold two public open houses in late February or early March for residents along the proposed route. The dates are still to be determined.