US Edge LNG Lands Biggest Upstream Contract
US small-scale gas liquefaction company Edge LNG is to collect and liquefy gas from a stranded well in the Marcellus shale and sell it to its customers, it said June 10. Initial operations are underway and expected to continue through 2022.
Edge LNG is buying the gas from large independent producer Exco Resources under what is its most important deal so far. It also hopes to pull off similar deals in other shale plays in the Permian and the Bakken before the end of the year. A lot of gas is flared in both regions which are primarily oil producing, so this technology will cut greenhouse gas emissions.
The agreement will see Edge LNG deploy its fully mobile, truck-delivered liquefied natural gas (LNG) equipment to the Marcellus site, including three Cryobox liquefaction units, with the potential to expand through the rapid deployment of additional units.
Edge LNG will deliver the LNG to domestic and commercial customers in the northeast by truck, Edge LNG expects this deal to generate surplus LNG beyond these agreements, allowing it to expand its customer base.
CEO Mark Casaday said the company was proud to be expanding its footprint in the Marcellus, which has many stranded wells. "This deal is yet another example of how Edge LNG is delivering value to operators, by monetising 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 maximising the value of their assets and providing new sources of revenue."