UGI Corporation is a holding company with businesses focused on providing energy distribution, transportation, marketing and storage services.
Our domestic propane distribution business is conducted through AmeriGas Partners. AmeriGas Propane is responsible for managing the Partnership. The Partnership serves approximately 2 million customers in all 50 states from approximately 2,000 propane distribution locations. In addition to distributing propane, the Partnership also sells, installs and services propane appliances, including heating systems, and operates a residential heating, ventilation, air conditioning, plumbing, and related services business in certain counties of Pennsylvania, Delaware, and Maryland. Typically, the Partnership’s propane distribution locations are in suburban and rural areas where natural gas is not readily available. Our local offices generally consist of a business office and propane storage. As part of its overall transportation and distribution infrastructure, the Partnership operates as an interstate carrier in all states throughout the continental U.S.
The Partnership sells propane primarily to residential, commercial/industrial, motor fuel, agricultural and wholesale customers. The Partnership distributed over 1.2 billion gallons of propane in Fiscal 2015. Approximately 96% of the Partnership’s Fiscal 2015 sales (based on gallons sold) were to retail accounts and approximately 4% were to wholesale and supply customers. Sales to residential customers in Fiscal 2015 represented approximately 39% of retail gallons sold; commercial/industrial customers 36%; motor fuel customers 15%; and agricultural customers 6%. Transport gallons, which are large-scale deliveries to retail customers other than residential, accounted for 4% of Fiscal 2015 retail gallons. No single customer represents, or is anticipated to represent, more than 5% of the Partnership’s consolidated revenues.
UGI International primarily serves the propane markets of 16 Western and Central European countries.
During Fiscal 2015:
- UGI France, UGI France sold approximately 283 million gallons of LPG in France (including approximately 52 million gallons attributed to Finagaz’ operations in France subsequent to the Totalgaz Acquisition) and approximately 47 million gallons of LPG in the Benelux countries.
- Flaga, Flaga sold approximately 326 million gallons of LPG including Kosan Gas, which is one of the largest sellers of LPG in the Nordic region of Denmark, Finland, Norway and Sweden.
- AvantiGas, AvantiGas sold over 156 million gallons of LPG.
UGI France is the largest LPG distributor in France and Luxembourg and one of the largest LPG distributors in the Netherlands and Belgium. UGI France’s customer base consists of residential, commercial, agricultural and motor fuel customer accounts that use LPG for space heating, cooking, water heating, process heat, forklift operations, and transportation. UGI France sells LPG in cylinders, and in small, medium and large tanks. Sales of LPG are also made to service stations to accommodate vehicles that run on LPG. UGI France sells LPG in cylinders to approximately 20,000 retail outlets, such as supermarkets, individually owned stores and gas stations. Supermarket sales represented approximately 76% of UGI France’s butane cylinder sales volume and approximately 14% of UGI France’s propane cylinder sales volume in Fiscal 2015. At September 30, 2015, UGI France had approximately 406,000 bulk customers, more than 18,500 natural gas customers and nearly 15 million cylinders in circulation. Approximately 61% of UGI France’s Fiscal 2015 sales (based on volumes) were cylinder and small bulk, 15% medium bulk, 21% large bulk and 3% to service stations for automobiles. UGI France also engages in wholesale sales of LPG and provides logistic, storage and other services to third-party LPG distributors. In addition, UGI France operates a natural gas marketing business in France and Belgium that services both commercial and residential customers. No single customer represents, or is anticipated to represent, more than 10% of total revenues for UGI France.
Flaga is the largest distributor of LPG in Austria, Denmark, Hungary, and Norway and one of the largest distributors of LPG in Poland, the Czech Republic, Slovakia, and Sweden. Flaga serves customers that use LPG for residential, commercial, industrial, agricultural, resale, and automobile fuel (“auto gas”) purposes. Flaga’s customers primarily use LPG for heating, cooking, motor fuel (including forklifts), leisure activities, construction work, manufacturing, crop and grain drying, power generation and irrigation. Flaga sells LPG in cylinders and in small, medium, and large bulk tanks. At September 30, 2015, Flaga had over 58,000 customers and nearly 5.8 million cylinders in circulation. Approximately 24% of Flaga’s Fiscal 2015 sales (based on volumes) were cylinder and small bulk, 34% auto gas, 38% large bulk, and 4% medium bulk.
AvantiGas serves customers that use LPG for wholesale, aerosol, agricultural, residential, commercial, industrial, and auto gas purposes. AvantiGas’ customers primarily use LPG for heating, cooking, motor fuel (including forklifts), leisure activities, industrial processes and aerosol propellant. AvantiGas sells LPG in small, medium, and large bulk tanks with small bulk sales representing approximately 6% of Fiscal 2015 sales (based on volumes), medium bulk sales representing approximately 2% of Fiscal 2015 sales and large bulk sales representing approximately 92% of Fiscal 2015 sales.
UGI’s natural gas utility operations (“Gas Utility”) consist of the regulated natural gas distribution businesses of our subsidiary, UGI Utilities, and UGI Utilities' subsidiaries, PNG and CPG. Gas Utility serves approximately 600,000 customers in eastern and central Pennsylvania and several hundred customers in portions of one Maryland county. Gas Utility is regulated by the PUC and, with respect to its several hundred customers in Maryland, the Maryland Public Service Commission.
Gas Utility is authorized to distribute natural gas to approximately 600,000 customers in portions of 46 eastern and central Pennsylvania counties through its distribution system of approximately 12,000 miles of gas mains. Contemporary materials, such as plastic or coated steel, comprise approximately 85% of Gas Utility’s 12,000 miles of gas mains, with bare steel pipe comprising approximately 11% and cast iron pipe comprising approximately 4% of Gas Utility’s gas mains. In accordance with Gas Utility’s agreement with the PUC, Gas Utility will replace the cast iron portion of its gas mains by March of 2027 and the bare steel portion by March of 2043. The service area includes the cities of Allentown, Bethlehem, Easton, Harrisburg, Hazleton, Lancaster, Lebanon, Reading, Scranton, Wilkes-Barre, Lock Haven, Pittston, Pottsville, and Williamsport, Pennsylvania, and the boroughs of Honesdale and Milford, Pennsylvania. Located in Gas Utility’s service area are major production centers for basic industries such as specialty metals, aluminum, glass and paper product manufacturing. Gas Utility also distributes natural gas to several hundred customers in portions of one Maryland county.
System throughput (the total volume of gas sold to or transported for customers within Gas Utility’s distribution system) for Fiscal 2013 was approximately 192.1 billion cubic feet (“bcf
”). System sales of gas accounted for approximately 29% of system throughput, while gas transported for residential, commercial and industrial customers who bought their gas from others accounted for approximately 71% of system throughput.
Midstream & Marketing
UGI’s Midstream & Marketing business consists of our energy marketing, midstream, and power generation businesses.
UGI’s energy marketing business sells natural gas, liquid fuels and electricity to approximately 17,000 commercial and industrial customers at approximately 41,000 locations. Energy Services serves customers in all or portions of Pennsylvania, New Jersey, Delaware, New York, Ohio, Maryland, Massachusetts, Virginia, North Carolina and the District of Columbia. Energy Services distributes natural gas through the use of the distribution systems of 36 local gas utilities. It supplies power to customers through the use of the transmission systems of 20 utility systems.
UGI’s Midstream business operates a natural gas liquefaction, storage and vaporization facility in Temple, Pennsylvania (“Temple Facility”), and propane storage and propane-air mixing stations in Pennsylvania. It also operates propane storage, rail transshipment terminals, and propane-air mixing stations in Steelton and Williamsport, Pennsylvania. These assets are used in UGI’s energy peaking business that provides supplemental energy, primarily liquefied natural gas and propane-air mixtures, to gas utilities on interstate pipelines at times of high demand (generally during periods of coldest winter weather). A fourfold expansion of the Temple Facility was completed in 2012. In Fiscal 2013, Energy Services expanded its energy peaking services at the Temple Facility and sold liquefied natural gas to customers for use by trucks, drilling rigs, other motor vehicles and facilities located off the gas grid. Energy Services also manages natural gas pipeline and storage contracts for UGI Utilities, subject to a competitive bid process, as well as storage capacity owned by Energy Services.
Through subsidiaries, UGI’s Midstream business owns and operates underground natural gas storage and related high pressure pipeline facilities which have FERC approval to sell storage services at market-based rates. The storage facilities are located in the Marcellus Shale region of Pennsylvania and have a total storage capacity of 15 million decatherms and a maximum daily withdrawal quantity of 224,000 decatherms.
UGI’s electric generation business is consists of:
- an approximate 5.97% (approximately 102 megawatt) ownership interest in the Conemaugh generation station (“Conemaugh”), a 1,711 megawatt, coal-fired generation station located near Johnstown, Pennsylvania. Conemaugh is owned by a consortium of energy companies and operated by a unit of GenOn Energy, Inc.
- Ownership of the Hunlock Station located near Wilkes-Barre, Pennsylvania, a 130-megawatt natural gas-fueled generating station.
- Ownership of a landfill gas-fueled generation plant near Hegins, Pennsylvania, with gross generating capacity of 11 megawatts. The plant qualifies for renewable energy credits.
- Ownership of 7.64 megawatts of solar-powered generation capacity in Pennsylvania, Maryland and New Jersey. Several other solar generation projects are in development.
Corporate & Other
Corporate & Other results principally comprise Electric Utility, “HVAC/R” business (heating, ventilation, air-conditioning, refrigeration and electrical contracting), and several other items such as unallocated corporate expenses and interest income.
Electric Utility supplies electric service to over 60,000 customers in portions of Luzerne and Wyoming counties in northeastern Pennsylvania through a system consisting of over 1,900 miles of transmission and distribution lines and 13 transmission substations.
HVAC/R, our heating, ventilation, air-conditioning, refrigeration and electrical contracting service business serves portions of eastern Pennsylvania and the Mid-Atlantic region, including the Philadelphia suburbs and portions of New Jersey and northern Delaware. This business serves more than 90,000 customers in residential, commercial, industrial and new construction markets.