UGI Energy Services, through its wholly owned subsidiary UGI LNG, Inc., currently owns and operates the Temple LNG facility located near Reading, Pennsylvania. This facility includes 15 million gallons of LNG storage capacity and a liquefaction plant that has been recently expanded to produce up to 120,000 gallons of LNG per day. The proposed new facility in Wyoming County will effectively double UGI’s liquefaction capability and increase its LNG supply diversity. “Our existing LNG plant at Temple has been a highly reliable and valuable asset enabling us to provide critical natural gas supply during periods of extreme natural gas demand, as well as provide firm LNG supply to large truck fleets, such as UPS,” said John Walsh, President and CEO of UGI. “The new plant will allow us to expand the availability of LNG to serve growing natural gas utility peak shaving demands and emerging LNG markets.”
Brad Hall, President of UGI Energy Services, commented, “The market for liquefied natural gas continues to grow thanks to its affordable cost and environmental benefits when compared to other petroleum products. As a result, truck fleets, oil and gas drilling rigs and remote industrial users not tied to the natural gas grid continue to switch to LNG. In the coming years, we also expect the use of LNG to increase in marine, rail, and mining applications.”
Mr. Hall added, “We have managed our investment risk by expanding LNG capacity in stages in order to keep pace with the growing LNG market. Each stage is backed by a significant level of long-term commitments from current and new customers, while still allowing for future growth. In addition to its long history of operating LNG assets, UGI Energy Services has one of the largest fleets of peak shaving assets in the region and one of the largest retail natural gas marketing businesses, providing it with a uniquely strong position to serve the market.”
http://thetimes-tribune.com/news/business/ugi-proposes-lng-plant-in-wyoming-county-1.1882344
The plant could supply a variety of industries, spokesman Matt Dutzman said. Natural gas peaker plants, smaller generating stations only run during high demand periods, are one target market.
Others include oil and gas drilling rigs, truck fleets and remote industrial users not well connected to pipeline grids.
Displacing diesel
“It’s using local Pennsylvania gas,” Mr. Dutzman said. “The LNG that we’re going to be producing is going to be used largely to displace diesel fuel.”
Nationally, LNG prices are highly competitive with diesel, said Tom Kloza, Oil Price Information Service’s global head of energy analysis, in an email on Friday.
LNG has been priced at a fraction of diesel prices for the last four years.
But that difference was more substantial from 2010 to 2014, when oil was above $100 per barrel. “I believe prices of $40 to $75 a barrel are more likely for the next few years, but one never knows,”Mr. Kloza said.