Edge LNG has expanded its remit to capture and liquefy gas from stranded wells in the Marcellus Shale through a new agreement with EXCO Resources, Kallanish Energy reports.
The Malvern, Pennsylvania-based company has confirmed that operations in the area have already begun and are expected to continue through to 2022. Edge LNG was previously selected by a large, unnamed producer to capture and liquefy natural gas in the same region in February this year.
Under the terms of the agreement, Edge LNG will deploy mobile, truck-delivered liquefaction equipment to the site, which includes three Cryobox liquefaction units. The company stated that there is also the potential for further expansion at the site through the “rapid deployment of additional units.”
Edge LNG will produce and then purchase LNG from EXCO Resources, which will then be sold and delivered to its clients in the US northeast throughout its truck-based pipeline system. The company added that it predicts the project will create a LNG surplus which will further increase its customer base.
“We are proud to be expanding our footprint in the Marcellus, which we’ve identified as an important region given its large number of stranded wells,” said Mark Casaday, CEO of Edge LNG, in a statement confirming the deal.
“This deal is yet another example of how Edge LNG is delivering value to operators, by monetizing wells that would otherwise remain dormant, and helping to grow the domestic LNG market in the US. In a challenging operating environment, we can help operators by maximizing the value of their assets and providing new sources of revenue,” he added.
This post appeared first on Kallanish Energy News.