Lon R. Greenberg, chairman and chief executive officer of UGI, added, “UGI’s midstream strategy is to provide value through the development of infrastructure that links Marcellus gas production in to attractive natural gas markets. We are pleased to be part of a project that is consistent with this strategy and that we believe will provide significant benefits to our utility and transportation service customers.”The sponsors expect to own equal equity interests in the project company formed to own the pipeline. Inergy Midstream will construct and operate the pipeline which is expected to cost approximately $1.0 billion and be funded equally by the sponsors. A non-binding open season will be announced in March 2012 for shippers interested in acquiring capacity on the proposed pipeline. About UGI Energy Services, Inc. UGI Energy Services, Inc. owns 14.7 BCF of underground natural gas storage in north-central Pennsylvania, operates LNG and propane/air peaking plants in Pennsylvania, and is developing midstream projects throughout the Marcellus Shale region. UGI Energy Services also markets natural gas, electricity and liquid fuels to over 10,000 commercial and industrial customers at more than 30,000 locations in eight eastern states and Washington, D.C. and owns electric generation assets in Pennsylvania. UGI Energy Services is a wholly-owned subsidiary of UGI (NYSE: UGI), a distributor and marketer of energy products and services that, in addition to UGI Energy Services, operates natural gas and electric utilities in Pennsylvania and distributes propane both domestically and internationally. Comprehensive information about UGI Corporation is available on the Internet at http://www.ugicorp.com. This press release contains certain forward-looking statements which management believes to be reasonable as of today’s date only. Actual results may differ significantly because of risks and uncertainties that are difficult to predict and many of which are beyond management’s control. You should read UGI’s Annual Report on Form 10-K for a more extensive list of factors that could affect results. Among them are adverse weather conditions, cost volatility and availability of all energy products, including propane, natural gas, electricity and fuel oil, increased customer conservation measures, the impact of pending and future legal proceedings, domestic and international political, regulatory and economic conditions including currency exchange rate fluctuations (particularly the euro), the timing of development of Marcellus Shale gas production, the timing and success of our commercial initiatives and investments to grow our business, and our ability to successfully integrate acquired businesses and achieve anticipated synergies. UGI undertakes no obligation to release revisions to its forward-looking statements to reflect events or circumstances occurring after today.
UGI Corporation (NYSE: UGI) today announced that UGI Energy Services, Inc., its midstream and energy marketing subsidiary, has entered into an agreement with Inergy Midstream, L.P. and Capitol Energy Ventures Corp. (a subsidiary of WGL Holdings, Inc.) to jointly market and develop a new interstate pipeline known as the Commonwealth Pipeline. The proposed 200-mile, 30-inch pipeline is expected to transport at least 800,000 dekatherms per day of natural gas when it is placed in service in 2015 and UGI Energy Services and Capitol Energy Ventures Corp. are expected to execute precedent agreements to become anchor shippers on the line. The Commonwealth Pipeline will extend from the southern terminus of Inergy Midstream’s MARC I pipeline in Lycoming County, Pennsylvania, due south through the UGI Utilities, Inc. service areas in central and eastern Pennsylvania and will continue south to access markets across southeastern Pennsylvania and the Philadelphia, Baltimore and Washington, D.C. metropolitan areas. The pipeline will connect these attractive markets directly to reliable supplies of Marcellus natural gas production from across Pennsylvania while providing a more cost effective transportation path than traditional routes. The pipeline is expected to cross and interconnect with a number of interstate pipelines along its route, resulting in even greater supply diversity while providing producers with direct access to markets that are currently served only through existing interstate pipelines. Bradley Hall, President of UGI Energy Services, Inc. said, "We are pleased to be working with Inergy and WGL to develop this significant infrastructure project, which will provide direct access to new markets for Marcellus gas producers. Gas production in the region has been limited by the lack of take-away capacity in existing interstate pipelines, most of which currently serve markets outside of Pennsylvania. Our goal in participating in this project is to bring gas produced in Pennsylvania directly to the major markets in central and eastern Pennsylvania."