Tom Shepstone
Shepstone Management Company, Inc.

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Edge LNG is moving Pennsylvania natural gas to New England, adroitly sidestepping pipeline battles fractivists thought would undermine the industry.

Back in June of last year we carried the news that a virtual pipeline company called Edge LNG had produced and delivered its first LNG to New England. Now, some seven months later, the company has made a deal with large gas producer in Tioga County, Pennsylvania to do a whole lot more of this, proving New England may be able to delay pipelines, but it still needs gas and that gas will get through one way or the other.

New England’s need for natural gas is undeniable, however much some of its green credential seeking pols may want it to be otherwise. Some 35% of Connecticut homes, for example, are heated with natural gas. Another 42% use fuel oil and many of these households would, no doubt, like to switch to gas.

Pipelines to get it there, though, create high profile opportunities for brain dead green virtue signalers to create some mayhem for attention seeking purposes. The solution: make the LNG on well sites in Pennsylvania and ship it by truck to New England. Gas industry innovation, around the quicksand traps naive fractivists thought would destroy the industry, triumphs yet again.

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 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. 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, Connecticut which will be used to provide natural gas to homes and businesses.

Mark Casaday, CEO at Edge LNG, says: “The Marcellus is an important region for us, there is lots of potential here with a large number of stranded wells. 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 US 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.

Such a beautiful thing!