UGI Energy Services Inc. has completed the fourth expansion of its flagship Auburn natural gas gathering system in perennially constrained Northeast Pennsylvania.
The project, which was announced last year, was finished this month, and natural gas is flowing on the entire expansion, which UGI spokesperson Pam Witmer said is serving only Cabot Oil & Gas Corp.
The project included two compressor stations and associated gathering lines. It boosted the system’s total capacity by more than 150 MMcf/d to 635 MMcf/d.
“The completion of this important project is consistent with our midstream strategy of executing projects that provide producers in Pennsylvania with a valuable path to market for their gas,” said UGI President Joseph Hartz. “As the Marcellus and Utica formations continue to be prolific producers of both wet and dry gas, we expect to identify additional opportunities to grow our midstream business.”
For Cabot, which produces more than 2 Bcfe/d and operates in only Susquehanna County, the expansion provides another outlet for its gas. Cabot has increasingly tapped new demand sources in recent years, including supplying local power plants and signing on to larger pipeline projects such as Atlantic Sunrise.
Auburn spans a 46-mile area in Susquehanna, Wyoming and Luzerne counties and moves gas from producing fields to multiple outlets, including the Tennessee Gas Pipeline and the Transcontinental Gas Pipe Line.
Witmer said the expansion came on in phases, with some additional volumes starting to flow last year and the rest entering service earlier this month. The company said last year when the project was announced that it would cost about $50 million.