UGI Corp. in King of Prussia will expand the Marcellus Shale gas pipeline network with a $190 million acquisition of Stonehenge Appalachia, writes Andrew Maykuth for The Philadelphia Inquirer.
UGI Energy Services, a subsidiary of UGI Corp., will become the new owner of the 47-mile pipeline in Butler County. Stonehenge Appalachia transports natural gas that is produced from local wells to interstate pipelines.
This is UGI’s third deal in recent years that has seen the energy company expand its footprint in the shale-gas region in Western Pennsylvania.
In 2019, UGI acquired a 240-mile system in Butler, Armstrong, and Indiana Counties from Columbia Midstream Group for $1.3 billion. Meanwhile, last year, the company acquired a 49 percent interest in the Pine Run Midstream system.
The three pipelines together form a “midstream system” that connects gathering pipelines that are linked to individual wells with big interstate pipelines.
“When we acquired the assets of Columbia Midstream Group in 2019, we committed to additional investments to build or buy quality systems in the region,” said Robert F. Beard, UGI’s executive vice president of natural gas, global engineering, construction, and procurement.
Adding that the Stonehenge acquisition “demonstrates our commitment to the Appalachian Basin.”
Read more about the acquisition in The Philadelphia Inquirer.
