Edge Gathering Virtual Pipelines 2 LLC (Edge LNG) has been selected by a large producer to capture and liquefy gas from its stranded wells in Tioga County in the Marcellus basin. For the producer, this represents an opportunity to reap economic benefits on assets unreachable by pipeline. Initial operation is underway and is set to be ongoing until at least 2022.
The deal sees Edge LNG deploy its fully mobile, truck-delivered LNG equipment clusters to the Marcellus site. Each cluster includes two Cryobox liquefaction units. This unique process, created by Galileo Global Technologies and deployed exclusively by Edge LNG in North America, can be delivered to any site accessible by road. After set-up and safety checks, production can begin within hours, with minimal investment required of the site owner and without the need of pipeline infrastructure.
Edge will purchase the LNG it extracts from the producer to deliver via its truck-based virtual pipeline to existing customers in the region. The company has also signed a deal to supply LNG to the City of Norwich, Conn., which will be used to provide natural gas to homes and businesses.
“The Marcellus is an important region for us, there is lots of potential here with a large number of stranded wells,” said Mark Casaday, CEO at Edge LNG. “So much gas goes unharnessed, purely because lack of access to a pipeline has meant there is no economic way to take it to market. We provide operators with an opportunity to profit from wells that would otherwise not be used and we make it into valuable fuel. It’s a win-win solution.”
The announcement follows Edge LNG’s U.S. launch and first deal earlier this year, which saw the company successfully monetize a source of previously stranded gas in the Marcellus field and deliver it as LNG to a New England utility.
Edge LNG’s stakeholders include specialist international private equity firm Blue Water Energy and Galileo Global Technologies.
Recommended Reading
Woodside’s Scarborough LNG Receives $1B Loan from Japanese Bank
2024-05-31 - Woodside Energy’s Scarborough LNG project, located off Australia’s coast, is scheduled to start shipping cargo in 2026.
Aera Energy Lands $2.8MM in DOE DAC Funding
2024-05-31 - The funding will be used to conduct a feasibility study to establish the viability of direct air capture as a business and technology in California, the company says.
Royale Reports Favorable Results in Permian’s Mississippian Interval
2024-05-31 - Royale Energy has four producing wells, with a fifth and sixth being drilled and completed in Ector County, Texas, with plans to bring them online later this year.
Energy Partnerships: Don’t Settle for ‘First Person that Comes Along’
2024-05-31 - Energy executives share insights and tips—look for red flags, run the “intercontinental flight test”—when forming lasting collaborative partnerships.
Energy Transition in Motion (Week of May 31, 2024)
2024-05-31 - Here is a look at some of this week’s renewable energy news.