Reading, PA – UGI Penn Natural Gas (PNG) will begin construction of the Gate Station located in a remote part of West Wyoming Borough on Monday, July 8. When connected to the Auburn II gathering line, the West Wyoming Gate Station will deliver locally-produced Pennsylvania gas to the Transco system, and will be able to receive gas from the Transco system to serve existing and future PNG distribution service customers.
Under a contract between UGI and UGI Energy Services, a significant portion of this gas delivered to Transco, in turn, will be delivered to PNG, resulting in significant customer savings. Other gas supplies delivered by PNG from the Auburn II gathering system into Transco may also be available purchase in the future by UGI.
The West Wyoming Gate Station is designed so that UGI can expand its distribution system in the future – if needed – to meet local demand.
The Gate Station facility will include metering equipment to measure gas delivered to or received from the pipeline, filters to remove any solid material from the delivered gas, electronic control equipment to allow remote operation and management of the facility, and above and below-ground piping. This will be the 13th Gate Station in PNG’s system. Throughout Pennsylvania, UGI Utilities, UGI PNG and UGI Central Penn Gas operate approximately 100 gate stations.
Delivery of locally-produced natural gas through the Auburn II line will allow PNG to replace Transco pipeline capacity, resulting in PNG customer demand charges savings of approximately $1 million from December 1, 2013 through July 31, 2015, and $10 million from August 1, 2015 through October 31, 2020, for a total savings of $11 million under these contracts alone.
UGI Penn Natural Gas is a wholly owned subsidiary of UGI Utilities, Inc. UGI Penn Natural Gas serves approximately 160,000 customers in 13 counties throughout northeastern and central Pennsylvania, including customers in and around Scranton, Wilkes-Barre and Williamsport. Additional information about UGI’s Penn Natural Gas is available at www.ugi.com.
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