UGI Utilities, Inc. has become the first natural gas utility in Pennsylvania to directly connect its natural gas distribution system with a Utica Shale well.
This historic direct interconnection of a Utica Shale well with a utility system is the result of a partnership between UGI and Shell Western Exploration & Production, Inc., a division of Shell Oil. The interconnection links a Utica Shale well and two Marcellus Shale wells located in northern Tioga County to a UGI high pressure pipeline.
The UGI Utica Shale connection project also included construction of a new meter / regulator station. The project will increase available supply of natural gas for UGI customers in Tioga and Potter Counties.
The interconnection with the Shell wells is designed to provide up to 14,000 dekatherms of natural gas per day into UGI’s system. The annual available supply of natural gas from these wells will be enough to provide the needs of more than 50,000 homes in UGI’s service area.
According to United States Geological Survey estimates, the Utica Shale – located thousands of feet under the Marcellus Shale formation — contains potential supplies of some 38 trillion cubic feet of natural gas, 208 million barrels of natural gas liquids, and about 940 million barrels of crude oil, making it an even larger resource than the Marcellus Shale formation.
Utica Shale underlies significant portions of Pennsylvania, Ohio, West Virginia, New York in the U.S, as well as Quebec Province in Canada. In Pennsylvania, the Utica Shale is found 10,000 feet or more below ground. The Utica Shale formation is named for the town in upstate New York where it was first identified in the 1840s.
“UGI continues to explore opportunities to bring affordable, local natural gas to our customers throughout Pennsylvania,” Kelly Beaver, UGI vice president of supply, said. “More than 70 percent of the natural gas we deliver through our system is produced in the Marcellus Shale region. We are pleased to add volumes of lower-cost Utica Shale natural gas to our portfolio as another supply source.
UGI Utilities has headquarters in Reading, Pennsylvania and serves 660,000 customers in 45 Pennsylvania counties and one county in Maryland.
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