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LNG Storage Facility in Pennsylvania Gets Nod to Expand

FERC Thursday approved UGI LNG Inc.'s application to build and operate an additional liquefied natural gas (LNG) storage tank at its Temple LNG facility in Berks County in western Pennsylvania.

UGI LNG, a subsidiary of Wyomissing, PA-based energy marketer UGI Energy Services Inc., proposes to construct a new storage tank with 1,000 MMcf of working gas capacity and a 150,000 Dth/d vaporization and sendout system along with associated boil-off handing equipment. Once finished, the Temple facility, which UGI LNG and affiliates have owned and operated since 1971, will have a maximum LNG storage capacity of 1,250 MMcfe and a maximum liquefaction and delivery rate of 205,200 Dth/d [CP08-4580].

The Temple facility receives gas for liquefaction and storage at Texas Eastern Transmission's (Tetco) Temple delivery meter and delivers all of its regasified LNG into the distribution system of affiliate UGI Utilities.

In its application, which was filed in August 2008, UGI LNG told the Federal Energy Regulatory Commission that ample demand exists for additional peaking storage capacity and deliverability because of expanding generation and industrial demand for natural gas, as well as greater demand on Tetco's system in the population centers of Philadelphia, New Jersey and the New York City metropolitan areas.

The company said it has received nonbinding bids for firm capacity from six companies for more than the capacity proposed for the new storage tank, which it expects to be operational in April 2012.

FERC approved UGI LNG's request to continue to charge market-based rates for all firm and interruptible storage, liquefaction and vaporization services.

The parent company, UGI Energy Services, is a marketer of gas, electricity and liquid fuels to customers in the Mid-Atlantic region.

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