Allentown, PA (October 6, 2010) – GEO Specialty Chemicals, Inc. (GEO) and UGI Utilities, Inc., the natural gas utility subsidiary of UGI Corporation (NYSE:UGI) announced plans to extend UGI’s natural gas distribution facilities to serve GEO’s chemical manufacturing plant located in South Whitehall Township, Lehigh County. The construction of over two miles of 8-inch pipeline began on September 27th and is expected to be completed by December 2010.
GEO and UGI collaborated during the design stage to accommodate future connections by residents and businesses along the path of the pipeline. The overall project will cost nearly $1.5 million.
Natural gas provides GEO the opportunity to reduce its oil storage, transportation and handling needs, displacing the need for approximately 1.5 million gallons of #6 fuel oil per year as the primary combustion fuel for its boilers. The conversion will reduce fuel costs and help the company remain competitive in the worldwide polyol market.
Brad Osborne, Plant Manager, said, “This investment in plant operations demonstrates our commitment to the greater Lehigh Valley as a major manufacturer, employer and partner in the local community. It also serves as an example of our continuing efforts to promote a green environment by converting to a cleaner-burning fuel.”
UGI’s Vice President of Marketing, Rates and Supply Robert Beard, added, “We are very pleased to have the opportunity to partner with GEO to supply a clean and less costly alternative energy source for its plant. Projects such as this demonstrate UGI’s commitment to the business communities that we serve.”
GEO Specialty Chemicals, Inc. is a privately held manufacturer of specialty chemicals serving the paints and coatings, water treatment and construction industries. It has 19 plants in the United States, manufactures approximately 300 specialty chemicals and sells through distribution channels worldwide.
UGI Utilities, Inc. has headquarters in Reading, Pa and serves more than 625,000 customers in 45 Pennsylvania counties and one county in Maryland.