UGI Energy Services Announces New Marcellus Shale Development Project

VALLEY FORGE, Pa.–(BUSINESS WIRE)–UGI Energy Services, LLC, a wholly-owned subsidiary of UGI Corporation
(NYSE:UGI), today announced the further expansion of its Auburn
Gathering System with the construction of two additional compressor
stations in Susquehanna County and Wyoming County. The expanded system
will increase the capacity of the Auburn Gathering System by
approximately 150,000 dekatherms per day, bringing the total capacity of
the system to 620,000 dekatherms per day. Deliveries will begin in the
fall of 2018 with the balance of capacity becoming available in the fall
of 2019.

The new development project will transport gas from acreage being
produced by Cabot Oil & Gas Corporation. The project is supported by a
long-term agreement and will require a total capital investment of $50
million.

ÔÇ£Demand for Marcellus gas continues to grow rapidly,ÔÇØ said John L.
Walsh, president and chief executive officer of UGI Corporation.
ÔÇ£Developing the infrastructure to transport this gas is critically
important. This expansion will supply gas to end-users and feed new
pipelines that will connect Marcellus gas to regions that have not
historically benefitted from access to this clean, abundant, and
inexpensive energy source.ÔÇØ

About UGI Energy Services, LLC

UGI Energy Services, LLC is a subsidiary of UGI Corporation. UGI Energy
Services, LLC markets natural gas, electricity and liquid fuels to over
14,000 residential, commercial, and industrial customers at
approximately 37,000 locations in ten eastern states and Washington,
D.C. UGI Energy Services, LLC also owns and operates, natural gas
underground storage fields, gathering systems, compressor stations and
peaking plants including LNG liquefaction and vaporization capability,
as well as propane terminals. In addition, UGI Energy Services, LLC owns
and operates a variety of midstream natural gas assets that support the
storage, transportation and delivery of natural gas in the Mid-Atlantic
region and also owns and operates electric generation assets in
Pennsylvania.

About UGI Corporation

UGI is a distributor and marketer of energy products and services.
Through subsidiaries, UGI operates natural gas and electric utilities in
Pennsylvania, distributes propane both domestically and internationally,
manages midstream energy and electric generation assets in Pennsylvania,
and engages in energy marketing primarily in the Mid-Atlantic region as
well as parts of Europe. UGI, through subsidiaries, is the sole general
partner and owns 26 percent of AmeriGas Partners, L.P. (NYSE:APU), the
nation's largest retail propane distributor.

Comprehensive information about UGI Corporation is available on the
Internet at http://www.ugicorp.com.

Contacts

UGI Energy Services, LLC
Pam Witmer, 717-579-8735
Vice
President, Governmental Affairs
or
UGI Corporation
Will
Ruthrauff, 610-456-6571
Director, Investor Relations
or
Brendan
Heck, 610-456-6608
Manager, Investor Relations