Edge Gathering Virtual Pipelines 2 LLC has been selected by a large producer to capture and liquefy gas from its stranded wells in Tioga County in the Marcellus basin, Pennsylvania, US.
For the producer, this is 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.
Initial operation is underway and is set to be ongoing until at least 2022 and Edge LNG claims the “deal will transform previously stranded gas into profitable LNG”.
The deal sees Edge LNG deploy its fully mobile, truck-delivered liquefied natural gas equipment clusters to the Marcellus site and 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.
“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.”
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 Norwich, Connecticut which will be used to provide natural gas to homes and businesses.
The announcement follows Edge LNG’s US launch and first deal earlier last year, which saw the company successfully monetise a source of previously stranded gas in the Marcellus field and deliver it as LNG to a New England utility.
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