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 LNG equipment clusters to the Marcellus site. 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, Conn., which will be used to provide natural gas to homes and businesses.
“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.”
The announcement follows Edge LNG’s U.S. 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.
Demand grows across Asia, with China and India pushing the post-COVID rebound.
At today’s prices, the agreement is worth about $12 billion.
TotalEnergies has signed a sale and purchase agreement on June 3 with Novatek to acquire 10% of Arctic Transshipment LLC, which owns and will operate two LNG transshipment terminals being built in the Murmansk and Kamchatka regions of Russia.