Certarus Ltd. has entered into a flare gas capture and compressed natural gas supply agreement on Aug. 19 with a multinational American energy supermajor to service its electric hydraulic fracturing operations in the Delaware and Midland basins.
This is the first Permian Basin contract that Certarus has entered into for the sourcing of compressed natural gas through flare gas capture. By capturing flare gas, Certarus will provide a regional supply of clean, cost-effective energy to help support corporate environmental, social and governance (ESG) best practices.
“We are seeing an increasing trend within completions to use electric hydraulic fracturing as a means of reducing carbon emissions and achieving cost savings. Certarus operates the largest bulk CNG trailer fleet in North America and is well-positioned to benefit from this trend. By sourcing CNG through flare gas capture, Certarus provides the industry with even more options to reduce carbon emissions,” Nathan Ough, vice president of Certarus, said.
Based on this strategic agreement, Certarus will displace a minimum of 5.5 million gallons (20 million liters) of diesel fuel with clean-burning CNG with the option for the Supermajor to expand up to 37.8 million gallons (143 million liters) during the term.
The corporation has invested significant resources to build-out a reliable compressed natural gas platform to supply both dual fuel and electric hydraulic fracturing operations. Energy companies across North America, including Exxon (via its XTO subsidiary), Diamondback, Shell, EOG Resources, Devon, CNX Resources, and Apache have entered into contracts for electric hydraulic fleets, in some cases with terms up to four years.
Certarus expects to commence CNG supply to Supermajor in fourth-quarter 2019 in parallel with a larger audience of end-users converting to compressed natural gas.
Recommended Reading
Matador Stock Offering to Pay for New Permian A&D—Analyst
2024-03-26 - Matador Resources is offering more than 5 million shares of stock for proceeds of $347 million to pay for newly disclosed transactions in Texas and New Mexico.
TPG Adds Lebovitz as Head of Infrastructure for Climate Investing Platform
2024-02-07 - TPG Rise Climate was launched in 2021 to make investments across asset classes in climate solutions globally.
Stockholder Groups to Sell 48.5MM of Permian Resources’ Stock
2024-03-06 - A number of private equity firms will sell about 48.5 million shares of Permian Resources Corp.’s Class A common stock valued at about $764 million.
Northern Oil and Gas Ups Dividend 18%, Updates Hedging
2024-02-09 - Northern Oil and Gas, which recently closed acquisitions in the Utica Shale and Delaware Basin, announced a $0.40 per share dividend.
Buffett: ‘No Interest’ in Occidental Takeover, Praises 'Hallelujah!' Shale
2024-02-27 - Berkshire Hathaway’s Warren Buffett added that the U.S. electric power situation is “ominous.”