Deal will generate cash flow from previously stranded gas wells
Pennsylvania, USA, June 10th 2020; Edge Gathering Virtual Pipelines 2 LLC (“Edge LNG”) has been selected by EXCO Resources to capture and liquefy gas from a stranded well in the Marcellus Shale. Initial operations are underway and expected to continue through 2022.
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.
The 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 no need for pipeline infrastructure.
Edge LNG will both produce the LNG and purchase it from EXCO Resources. This 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. Additionally, Edge LNG expects this deal to generate surplus LNG beyond these agreements, allowing it to expand its customer base.
Mark Casaday, CEO at Edge LNG, says: “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. This deal is yet another example of how Edge LNG is delivering value to operators, by monetizing 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 maximizing the value of their assets and providing new sources of revenue. We have a lot of interesting projects underway and we expect to have our technology deployed and producing LNG in the Permian and the Bakken, in addition to the Marcellus, before the end of this year. The environmental and cost efficiencies the Edge LNG solution can bring, are considerable and it is great to see producers recognizing this.”
The announcement follows deals completed by Edge LNG in recent months, which saw the company successfully monetize other producers’ sources of previously stranded gas in the Marcellus and deliver it as LNG to New England utilities.
Edge LNG’s stakeholders include specialist international private equity firm Blue Water Energy and Galileo Global Technologies.