As America and the rest of the world seeks more natural gas, it is increasingly looking to Pennsylvania. The Energy Information Administration says Pennsylvania markets the second most natural gas in the country, just behind Texas and more than double the third-place state, Oklahoma. One major player in getting Pennsylvania’s gas from the fields and to the market just committed to a major new investment.
In late May, UGI Energy Services announced a new expansion to its Auburn Gathering System. The first part of the system was built in 2011. It took an existing nine-mile distribution line and turned it around into a gathering line to take gas from Auburn county into the Tennessee Pipeline. That line starts all the way down in Louisiana, and delivers gas to northeast cities like New York and Boston.
In 2013, the Auburn system was expanded to include a 28-mile pipe connecting to the Transco Pipeline, a line that runs from Texas to New York City. Subsequent expansions made the Auburn system a $215 million investment consisting of 46 miles of pipe and two compressor stations. The line runs across the Susquehanna, Wyoming, and Luzerne counties.
UGI has now committed to investing another $50 million to build two new compressor stations in the system. One will be located in Susquehanna county and the other in Wyoming county. These will significantly increase the amount of gas that can be pushed through the existing pipes, as the total capacity will increase by 150,000 dekatherms per day to 620,000.
All this new infrastructure only increases the value of the Marcellus shale field. Here at Cimmaron Land, we are not newcomers trying to find our way around this remarkable land. We have completed more than 3,000 abstracts and worked in 38 counties across Pennsylvania, Ohio, and West Virginia. Contact us today to explore opportunities in the region.