UGI Energy Services, LLC announces project to supply power generation and other local markets in Pennsylvania

VALLEY FORGE, Pa.–(BUSINESS WIRE)–UGI Energy Services, LLC (“UGIES”) today announced that it 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 per day 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 (“Hummel”), 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.

“We are excited about this project that will continue to expand natural gas availability in the Pennsylvania region,” said John Walsh, President and CEO of UGI Corporation. “In addition to helping lower natural gas costs, we are proud that it is expected to create jobs and stimulate economic growth.”

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.

For more information, please go to www.sunburypipeline.com. Residents with questions about the Sunbury Pipeline project can email them to [email protected] Additional information can be found at the FERC website (www.ferc.gov). FERC evaluates interstate natural gas pipeline applications for approval. Also, the U.S. Department of Transportation Office of Pipeline Safety (www.phmsa.dot.gov/pipeline), which enforces regulations of the nation’s pipeline transportation system, is another valuable source of information.

About UGI Energy Services, LLC

UGI Energy Services is a subsidiary of UGI Corporation. UGI Energy Services markets natural gas, electricity and liquid fuels to approximately 19,000 business, commercial, industrial, institutional and government customers at approximately 43,000 locations in nine states and Washington, D.C. In addition, it stores and delivers natural gas and generates electricity.

About UGI Corporation

UGI Corporation is a distributor and marketer of energy products and services. Through subsidiaries, UGI Corporation operates natural gas and electric utilities in Pennsylvania, distributes propane both domestically and internationally, manages midstream energy and electric generation assets in Pennsylvania, and engages in energy marketing in the Mid-Atlantic region. UGI Corporation, through subsidiaries, is the sole General Partner and owns 26% of AmeriGas Partners, L.P. (NYSE: APU), the nation’s largest retail propane distributor.

Comprehensive information about UGI Corporation is available on the Internet at http://www.ugicorp.com