Edge Gathering Virtual Pipelines 2 LLC was selected by EXCO Resources Inc. to capture and liquefy gas from a stranded well in the Marcellus Shale for what the company, known as Edge LNG, said June 10 is its largest project to date.
Commenting on the agreement in a statement, Edge LNG CEO Mark Casaday said: “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.”
Edge LNG is a privately held company focused on turning stranded and flared gas into revenue without the need for pipelines or fixed infrastructure through Cryobox technology purchased directly from manufacturer Galileo Global Technologies, which is also a shareholder. Private equity firm Blue Water Energy is also a stakeholder in Edge LNG.
As part of its agreement with EXCO Resources, Edge LNG will both produce the LNG and purchase it from EXCO. The LNG will then be sold and delivered to customers in the northeast region via its truck-based virtual pipeline, where it will be used to provide natural gas to homes and businesses.
Initial operations are underway and expected to continue through 2022, according to the company release.
The deal, which will generate cash flow from previously stranded gas wells, is yet another example of how Edge LNG is delivering value to operators by monetizing wells that would otherwise remain dormant, Casaday said.
“In a challenging operating environment, we can help operators by maximizing the value of their assets and providing new sources of revenue,” he said.
Casaday also noted in his statement that Edge LNG has other projects underway in the Permian and Bakken that he expects will start producing LNG before year-end 2020.
The U.S. Energy Department on July 6 approved the export of up to 1 Bcf/d of LNG from the proposed Jordan Cove terminal in Oregon, a move it said would ease U.S. sales of the fuel to Asian markets.
Demand is set to decrease for two straight years for the first time since 2006.
FERC says environment impact ‘would not be significant’ if the company follows the report’s recommendations.