Chesapeake Launches ‘Responsibly Sourced’ Shale Gas Pilot with Project Canary

Chesapeake Energy Corp. launched a pilot partnership with Denver-based startup Project Canary on April 13 to produce “certified responsibly sourced natural gas” as the U.S. shale producer works toward achieving its ESG goals set upon its recent emergence from bankruptcy.

The initial agreement between Chesapeake and Project Canary includes select wellpads in northeast Pennsylvania and northwest Louisiana. The partnership may be expanded based on initial findings and market conditions, the companies’ joint release noted.

“Through this two-basin partnership, we will be able to further demonstrate our commitment to generating shareholder value and ESG excellence,” Chesapeake CEO Doug Lawler said in a statement. “We are excited to work with Project Canary as we continue to expand our sustainability efforts and deliver top operating performance.”

As part of its restructuring process, Chesapeake retooled its operations to focus primarily on gas production including plans to direct 85% of its capital to its top-tier Marcellus and Haynesville assets this year. Additionally, the company unveiled a commitment in February to achieve net-zero greenhouse gas direct emissions by 2035 among other environmental targets.

The partnership is also the latest in a series of recently launched projects by Project Canary, which has developed a unique wellhead to burner-tip pilot that can be used to monitor emissions across the energy value chain—from the production, transmission and marketing of responsibly sourced gas or RSG.

According to a joint release by Chesapeake and Project Canary, the pilot project aims to validate the high environmental standards by which natural gas is produced and that a market exists for differentiated RSG products using Project Canary’s real-time, continuous emissions monitoring technology at Chesapeake wellpads.

“With our innovative technology and independent certification process, Project Canary aims to meet the market demand for sustainably developed resources and real-time emissions monitoring,” Project Canary Co-founder and CEO Chris Romer said in a statement.

“Chesapeake is an industry pioneer and top producer, and we’re proud to help them reach the highest environmental standards,” he added.

Watch Project Canary CEO Chris Romer Discuss the Role of Natural Gas in ‘100-foot ESG Tsunami’

The partnership with Chesapeake marks more than two-dozen agreements Project Canary has entered with E&P companies. The company has recently announced RSG projects across the U.S. including one with EQT Corp. in the Appalachian Basin.

Project Canary also recently closed on a Series A investment from leading venture capital firms comprising Quantum Energy Partners, Global Reserve Group and Energy Impact Partners.