Looking to capitalize on the growing need for natural gas storage in the prolific Marcellus Shale region of Pennsylvania, Valley Forge, PA-based UGI Corp. said Friday its UGI Central Penn Gas Inc. (UGI CPG) and UGI Storage Co. subsidiaries are conducting a binding open season for 14.7 Bcf of firm underground storage service from three existing storage fields.

The fields are near the Marcellus Shale in Tioga, Potter and Cameron counties.

UGI CPG’s storage fields have interconnections to Dominion Transmission, Transcontinental Gas Pipe Line, National Fuel Gas Supply, Tennessee Gas Pipeline and UGI CPG’s distribution system. UGI said service is being offered for the injection season starting April 1 with withdrawals the subsequent winter, Nov. 1, 2010 through March 31, 2011.

The open season ends March 1. UGI said bids will be evaluated and capacity will be allocated based on the highest price per dekatherm of seasonal storage quantity. Existing UGI CPG customers will be permitted to retain existing storage entitlements by matching the highest bid(s). If existing customers do not elect to match the highest bid(s) in part or total, UGI CPG said it will award any remaining storage capacity to the highest bidders from the open season.

UGI Storage filed with the Federal Energy Regulatory Commission (FERC) requesting authorization to acquire and operate the storage facilities, which are currently owned by UGI CPG. Upon FERC approval of the transfer, UGI Storage said it will operate the facilities as an interstate natural gas storage company, offering storage services subject to market based rates.

For a bid package contact Andrew Franco at (610) 796-3522 or by e-mail at afranco@ugi.com. More information is at www.ugistorage.com.

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