Page 12 - NorthAmOil Annual Review 2021

NorthAmOil NEWS IN BRIEF NorthAmOil

UGI to acquire Stonehenge SERVICES of E&P operators in major US basins.”
MILESTONE ENVIRONMENTAL SERVICES,
Appalachia midstream Milestone acquires active January 04, 2022

natural gas gathering Haynesville facility and ENERGY TRANSITION
system multiple permits

UGI announced today that its subsidiary, Milestone Environmental Services, one of UGI adds renewable natural
UGI Energy Services, has entered into a the largest independent providers of energy gas to its supply portfolio
definitive agreement to acquire Stonehenge waste sequestration services in the US, today
Appalachia from Stonehenge Energy Holdings announced that it has acquired an energy UGI Utilities has begun to accept renewable
for approximately $190mn. This investment waste disposal facility in Center, Texas, natural gas (RNG) from Archaea Energy into
is expected to be immediately accretive to effective December 31, 2021, along with two its pipeline distribution system. UGI Utilities
adjusted earnings. additional permits for energy waste landfills is a subsidiary of UGI Corporation.
The Stonehenge system, located in Butler in Texas. In fiscal 2021, UGI Utilities signed an
County Pennsylvania, includes more than 47 The acquisition includes the purchase of interconnect agreement with Archaea Energy
miles of pipeline and associated compression an active slurry injection facility with two to accept delivery of RNG produced from the
assets, and has gathering capacity of 130mn injection wells, located in Shelby County, Keystone Landfill in Dunmore, Pennsylvania,
cubic feet per day. three miles north of Center, Texas, on into its natural gas pipeline that serves its
“We are very pleased with this investment Hwy 96. The facility is a cornerstone of the distribution system. Once fully operational, the
and the opportunity to grow our presence environmental infrastructure in place to recently completed interconnect is capable of
in the Appalachian Basin”, said Robert F. manage energy waste generated by E&P accommodating up to 5.3bn cubic feet of RNG
Beard, Executive Vice President – Natural operators drilling for natural gas in the supply each year, making this the largest current
Gas, Global Engineering, Construction and Haynesville Shale in Texas and Louisiana. RNG supply point in the United States to date.
Procurement. “When we acquired the assets Milestone plans to continue normal business The introduction of RNG supply into UGI
of Columbia Midstream Group in 2019, we operations for customers and employees of Utilities’ distribution system provides benefits to
committed to additional investments to build the facility, and also plans several upgrades to the environment and to the many communities
or buy quality systems in the region. The the location over time. we serve by lowering net carbon emissions.
acquisition of Stonehenge, in addition to our The acquisition of the Center facility UGI Utilities expects to utilise a portion
recent purchase of an ownership stake in the repositions Milestone in the core of the of the RNG to serve customers who purchase
Pine Run gathering system, demonstrates our Haynesville and makes Milestone a leading supply directly from UGI Utilities beginning
commitment to the Appalachian basin, which operator of environmental infrastructure in in 2022. This purchase was made possible
averaged a record 31.9bn cubic feet per day of the basin. Milestone had been an operator by regulatory approval of a five-year pilot
production in the first half of 2021, the highest in East Texas for several years at its former program by the Pennsylvania Public Utility
for a six-month period since production location near Jasper, Texas. Commission (PUC). The pilot, the first of its
began in 2008.” In addition, the transaction included kind in Pennsylvania, allows UGI Utilities
“Importantly, this transaction has stable purchase options on two yet-unconstructed to integrate RNG into its supply purchase
cash flows that are underpinned by a long- energy waste landfill permits in Texas – one in portfolio to provide benefits for its customers.
term contract with minimum volume the Haynesville shale and one in the Permian All three PUC commissioners supported
commitments and significant acreage Basin. These permits add significantly and commended UGI Utilities’ RNG
dedications in some of the most prolific to Milestone’s portfolio of permitted pilot programme, including PUC Chair,
production areas in the Appalachian Basin. locations, providing opportunities for the Gladys Brown Dutrieulle, with specific
Roger Perreault, president and CEO company to further develop its energy waste acknowledgement by Commissioners Ralph
added: “This investment is consistent with our infrastructure. V. Yanora and John F. Coleman, Jr. who
strategy of delivering reliable earnings growth “Milestone’s mission is to Clean Up commended UGI Utilities for the initiative as
while continuing to rebalance our business Energy?. We believe we have an obligation it “represents an innovative economic model
activities with increasing investments in to help our customers make good on their that balances environmental, customer, and
natural gas and renewables. We are pleased to commitments to lower their emissions gas supply requirements consistent with
enhance our natural gas gathering capabilities and produce vital energy for the world in the Commonwealth’s least-cost gas supply
through this investment in well positioned a more sustainable way,” said Gabriel Rio, requirements”.
assets in the Appalachian Basin.” Milestone president and CEO. “As E&P “The approval of this pilot program is
The transaction is subject to customary operators increasingly choose professional a significant step forward as we continue
regulatory and other closing conditions, management of their energy waste streams, to develop sustainable, environmentally
including Federal antitrust clearance pursuant more infrastructure will be needed to handle responsible energy solutions for our
to the US Hart-Scott-Rodino Antitrust the demand. We believe the Haynesville will customers,” said Robert F. Beard, Executive
Improvements Act. Assuming fulfilment of all be a growing market given the increased Vice President - Natural Gas, Global
conditions, the transaction is expected to close global demand for natural gas as the world Engineering, Construction and Procurement,
by January 31, 2022. transitions its energy usage to lower-carbon UGI. “UGI remains committed to developing
UGI, January 04, 2022 sources. Our decision to acquire these assets renewable energy sources for the communities
was a strategic one that supports Milestone’s we serve.”
growth while serving the environmental needs UGI, January 04, 2021

P12 www. NEWSBASE .com Week 01 06•January•2022