The plant will utilize natural gas, which will be supplied by the Auburn gathering system from Marcellus Shale field.
Planned to commence operations by early 2017, the facility is expected to produce 120,000 gallons of LNG a day. It will allow the company to strengthen its liquefaction and LNG supply capabilities.
UGI president and CEO John Walsh said: "The new plant will allow us to expand the availability of LNG to serve growing natural gas utility peak shaving demands and emerging LNG markets."
UGI Energy Services’ subsidiary UGI LNG operates an LNG facility near Reading in Pennsylvania. The facility features 15 million gallons of LNG storage capacity and a liquefaction plant that produces up to 120,000 gallons of LNG a day.
"Our existing LNG plant at Temple has been a highly reliable and valuable asset enabling us to provide critical natural gas supply during periods of extreme natural gas demand, as well as provide firm LNG supply to large truck fleets, such as UPS," Walsh added.
