As the first snow of the season has arrived along with sub-freezing temperatures, behind every thermostat sits a sophisticated network of natural gas storage and delivery systems—including liquefied natural gas (LNG) peak shaving facilities.
Peak shaving facilities function as strategic reserves for the natural gas system, storing fuel during off-peak months and releasing it when natural gas demand spikes. The process involves cooling natural gas to -260°F, reducing its volume by 600 times for efficient storage, then warming it back to gaseous form for pipeline injection when called upon.
UGI Energy Services' LNG Network
UGI Energy Services operates one of the most extensive LNG networks in the Mid-Atlantic region, with four major peak shaving facilities strategically positioned across Pennsylvania to serve distinct demand centers.
The newest of these four, the company’s Carlisle LNG storage and vaporization facility, was recently commissioned on November 25, just ahead of the winter heating season.
The new Carlisle LNG facility features 4 million gallons of LNG storage capacity. "By enhancing our ability to meet demand during the coldest days of the year with market area supply, we're strengthening energy reliability across the Cumberland Valley while supporting the region's continued growth,” said Joe Hartz, President of UGIES, as the Cumberland County community celebrated Carlisle LNG’s commissioning.
Temple LNG Facility serves as UGI's flagship operation near Reading in southeastern Pennsylvania. With over 15 million gallons of LNG storage capacity—equivalent to 1.25 billion cubic feet of natural gas—Temple is the largest facility in the network. The site can deliver up to 205,200 Dth daily to meet extreme demand and operates the company's first liquefaction capability, producing 120,000 gallons of LNG per day. It has operated safely and reliably for more than 50 years.
Steelton LNG Facility, commissioned in November 2017 just south of Harrisburg, was specifically designed to serve the capital region during extreme cold weather. The facility stores 2 million gallons of LNG and can deliver up to 70,000 Dth per day into the local Harrisburg-area distribution network. Located near major population centers in Dauphin County, Steelton provides critical backup supply that helps safeguard against service interruptions.
Bethlehem LNG Facility, completed in November 2020, extended UGI's peak shaving network into the Lehigh Valley. This facility added 2 million gallons of storage capacity with maximum daily deliverability of 70,000 Dth to serve Bethlehem and surrounding communities. The project overcame significant site challenges including wetlands, streams, and brownfield remediation—earning the American Council of Engineering Companies of Pennsylvania's Diamond Award for Engineering Excellence. Bethlehem's design includes both LNG loading and unloading capabilities for tanker trucks, adding operational flexibility to move fuel where it's needed year-round, and during peak demand periods.
In addition to the Temple, Steelton, Bethlehem and Carlisle peak-shaving and storage facilities, UGI Energy Services also operates its Manning LNG liquefaction and storage facility in northeastern Pennsylvania's Wyoming County.
Completed in 2017 and expanded in 2025, Manning stores 500,000 gallons of LNG and produces an additional 240,000 gallons per day through its liquefaction plant. Strategically positioned in the heart of Pennsylvania's Marcellus Shale natural gas region, Manning is interconnected with UGI's Auburn gathering system, providing direct access to low-cost domestically produced natural gas. The facility serves both the peak shaving market and the industrial LNG transportation sector, supplying truck fleets, oil field service companies, and remote industrial users.
Together, these assets form a resilient supply system capable of delivering supplemental natural gas when winter weather tests pipeline capacity.
Winter 2025-2026: When Peak Shaving Becomes Essential
The approaching winter heightens the importance of these facilities. Current forecasts predict temperatures approximately 5% colder than last winter due to continuing La Niña weather patterns, with the Northeast expected to experience colder-than-average conditions.
Natural gas demand is projected to grow more than 5% through 2026 relative to 2024 levels, with residential and commercial heating demand alone expected to increase by 1.6 billion cubic feet per day this winter.
Peak shaving facilities prove most valuable during prolonged cold weather events lasting multiple days. Recent winters demonstrated this vulnerability—the 2024-2025 season saw extended cold snaps in the Northeast that resulted in significantly higher energy prices despite record-high storage inventories at the season's start. Winter Storm Uri in February 2021 and the 2014 Polar Vortex illustrated how extreme weather can strain natural gas delivery systems when pipeline capacity reaches its limits.
Pennsylvania and the broader Northeast face well-documented natural gas pipeline capacity constraints that make local peak shaving facilities vital.
As winter 2025-2026 approaches, UGI's LNG facilities stand ready to be called into action: ensuring reliable natural gas service continues flowing to homes and businesses even when temperatures drop for extended periods. While these facilities operate largely unnoticed, they represent essential infrastructure for winter energy reliability across the Commonwealth.
