FERC Tuesday gave the go-ahead for UGI LNG Inc., a subsidiary of Pennsylvania midstream operator UGI Energy Services Inc., to place into service the expansion of its Temple liquefied natural gas (LNG) storage facility in Berks County, PA.

The storage capacity of the Temple facility has increased to 1.25 Bcf from the existing 250 MMcf, with maximum liquefaction and delivery rate estimated at 205,200 Dth/d. The Temple storage facility receives gas for liquefaction and storage at Texas Eastern Transmission’s (Tetco) Temple delivery meter and delivers all of its vaporized LNG into the distribution system of UGI Utilities, an affiliate of UGI LNG [CP08-458].

In its application with the Federal Energy Regulatory Commission (FERC), UGI LNG said ample market demand exists for additional LNG peaking storage capacity and deliverability because of increased power generation and industrial demand for natural gas nationally, as well as greater demand on Tetco’s system in the population centers of Philadelphia, New Jersey and the New York metropolitan area. It said it had received commitments from shippers for more than the proposed capacity to be created by the project.

UGI Energy Services recently said it will provide LNG to fuel drilling rigs active in the Marcellus Shale region (see Shale Daily, July 13). The LNG would displace diesel now being used to fuel power generation equipment at rig sites. UGI said it has partnered with Pittsburgh-based EQT Corp., which has launched a pilot program to begin converting drilling rigs from diesel to LNG, which is lower in cost and emits less pollution than diesel.

In addition, UGI Energy Services said it plans to provide LNG to truck fleets and industrial facilities in the Mid-Atlantic as an alternative to diesel and other petroleum products.