UGI (UGI) Utilities Signs First Agreement to Bring Significant Renewable Natural Gas Supplies into its System

UGI Utilities, Inc. (“UGI Utilities”), a subsidiary of UGI Corporation (NYSE: UGI), announced that the company has signed an agreement with Archaea Energy, LLC (“Archaea”) of Canonsburg, 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.

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, a byproduct of naturally decomposing materials in the landfill, will be processed and conditioned to meet UGI Utilities’ gas quality requirements. The project is scheduled to become operational in September 2021.

When fully operational, the UGI Utilities system will be designed to take up to 16,000 mcf (thousand cubic feet) 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.

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 UGI Utilities 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 CO2 emissions that would otherwise occur by up to approximately 314,000 metric tons per year. This CO2 reduction equates to removing the emissions from more than 67,000 passenger vehicles over the course of a calendar year.

“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,” said Robert F. Beard, Executive Vice President - Natural Gas, UGI. “We look forward to expanding our portfolio of renewable energy offerings available to our customers across our service territories.”

Archaea CEO Nick Stork stated, “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 decarbonization of energy resources. Pennsylvania is our home, and we are thrilled to work with another “hometown” company like UGI Utilities,” Stork added.

“For over 135 years, UGI Utilities has focused on providing safe, reliable service to its customers and to the many communities it serves,” said Hans Bell, President of UGI Utilities. “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 offer energy solutions that are innovative, efficient and beneficial to the environment.”

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