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UGI Utilities signs deal with Archaea Energy to bring RNG into its system

In the United States (US), UGI Utilities, Inc., a subsidiary of UGI Corporation has announced that the company has signed an agreement with Archaea Energy, LLC (Archaea) of Canonsburg, Pennsylvania (PA) to accept delivery of renewable natural gas (RNG) from the Keystone Landfill located in Dunmore, PA into its distribution system. This is the first RNG supply interconnect agreement UGI Utilities has signed to-date.

In the United States (US), UGI Utilities, Inc., a subsidiary of UGI Corporation has signed an agreement with Archaea Energy, LLC (Archaea) of Canonsburg, Pennsylvania (PA) to accept delivery of renewable natural gas (RNG) from the Keystone Landfill located in Dunmore, PA into its distribution system (photo courtesy Friends of Lackawanna).

The RNG supply will be injected into UGI Utilities’ high-pressure natural gas pipeline serving its distribution system located in Lackawanna County, PA. The landfill gas (LFG), a byproduct of naturally decomposing materials in the landfill, will be processed and conditioned to meet UGI Utilities’ gas quality requirements.

Archaea is proud to partner with UGI Utilities to help bring renewable energy to eastern Pennsylvania. UGI Utilities and Archaea share a common culture of safety, reliability, and commitment to the decarbonization of energy resources. Pennsylvania is our home, and we are thrilled to work with another “hometown” company like UGI Utilities, said Nick Stork, CEO, Archaea Energy.

The project is scheduled to become operational in September 2021, and when fully operational, the UGI Utilities system will be designed to take up to 16 000 mcf per day of RNG supply at a rate of up to 780 mcf per hour, making this the largest RNG supply point in the United States to-date.

This supply point will be available for the company, as well as for natural gas suppliers operating on its system, for the purpose of supplying UGI Utilities’ customers.

This agreement advances our strategy to position UGI Utilities as a leading provider of energy solutions that meet the environmental and social needs of our customers and our communities. We look forward to expanding our portfolio of renewable energy offerings available to our customers across our service territories said Robert F. Beard, EVP Natural Gas, UGI.

Moving this RNG supply into the UGI Utilities distribution system provides benefits to the company and to the many communities it serves. In addition to securing a local source of gas for customers, accepting the delivery of RNG for customer use reduces the release of naturally occurring methane from the Keystone Landfill into the atmosphere.

From an environmental perspective, accepting delivery of the RNG will reduce carbon dioxide (CO2) emissions that would otherwise occur by up to approximately 314 000 tonnes annually.

For over 135 years, UGI Utilities has focused on providing safe, reliable service to its customers and to the many communities it serves. Partnering with Archaea to bring these RNG volumes into our distribution system provides us with the opportunity to continue growing in an environmentally responsible way, and enhances and expands our commitment to offering energy solutions that are innovative, efficient, and beneficial to the environment, said Hans Bell, President of UGI Utilities.

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