A partnership of three companies proposed building a $1 billion pipeline that would be able to transport fuel from northern Pennsylvania to markets in central and eastern Pennsylvania, Philadelphia, Baltimore, and Washington. Most of the natural gas has been produced in Pennsylvania and transported through existing pipelines. The pipeline is proposed to be 200 miles and transport at least 800 million cubic feet of gas a day when it rolls out in 2015.
The pipeline would begin in Lycoming County and travel south through central and eastern Pennsylvania.
“We think it would be beneficial to Pennsylvania to have gas produced in the state consumed in the state,” said Hugh J. Gallagher, a spokesman for UGI Corp. of Valley Forge.
The pipeline represents the latest effort to build out a new infrastructure to exploit the large quantities of natural gas expected to be produced from the Marcellus – which is exploding at a rapid pace. Because of the advances in recent Marcellus drilling, natural gas has dropped to its lowest price in a decade. This has slowed down plans for new drilling unit wells until prices rebound.
“Gas production in the region has been limited by the lack of take-away capacity in existing interstate pipelines, most of which currently serve markets outside of Pennsylvania,” Bradley Hall, President of UGI Energy Services Inc. said in a statement. “Our goal in participating in this project is to bring gas produced in Pennsylvania directly to the major markets in central and eastern Pennsylvania.”
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