Pennsylvania, USA, 18 June 2019; Edge Gathering Virtual Pipelines 2 LLC (“Edge LNG”), the pioneer in delivering low-cost, high quality LNG by converting stranded and flared natural gas, has produced and delivered its first LNG in the United States. With no need for pipelines, Edge LNG is the first viable route to market for stranded gas reserves, and a revenue generating alternative to flaring or venting associated gas from oil production.
Edge LNG began on-well-site LNG production in the US on May 7 2019, accessing Marcellus gas in Pennsylvania, and making truck-delivered LNG sales to its first customers, which include Emera Energy Services, Inc. To date, EDGE has delivered over 30,000 gallons of LNG to a delivery point at a New England gas utility over 300 miles away from the Marcellus production site.
The Edge LNG Virtual Pipeline works by deploying Galileo Global Technologies’ transportable CryoboxTM LNG production and liquefaction equipment “at the source” – natural gas wells – and delivering the LNG directly to customers’ doorsteps. Edge LNG Cryobox units fit on a standard 40 ft tractor trailer and are designed to be quickly and easily connected, and disconnected, from feedstock gas wells. Units are also self-powered using produced gas, removing the need for a grid connection.
For owners of stranded gas wells, or oil producers forced to flare or vent associated gas, Edge LNG is a revolutionary way to monetize otherwise uneconomic assets. As a scalable and modular solution, Edge LNG requires minimal capex and opex investments that rise in parallel to the production curve, ensuring a compelling financial case for asset owners. For LNG buyers, Edge LNG offers a new source of high-quality, low cost LNG that can be delivered anywhere. By sourcing otherwise “wasted” gas and avoiding pipeline costs, Edge LNG will be among the most competitive suppliers of truck-delivered LNG worldwide.
It is estimated that stranded wells account for up to 60% of global reserves, and up to 20% of those drilled in Marcellus, showing the scale of this untapped resource.
— Mark Casaday, CEO
Edge LNG uses technology developed and proven in Argentina, and is successfully producing and delivering LNG in the US. However, it is suitable for use anywhere in the world where stranded, flared or vented gas is an issue. The World Bank estimates 140 bn cubic meters of gas are flared globally each year, emitting 300m tons of CO2 and wasting enough gas to provide 750 bn kWh of electricity, or more than the African continent’s current annual electricity consumption.
Mark Casaday, Chief Executive Officer of Edge LNG said: “It is estimated that stranded wells account for up to 60% of global reserves, and up to 20% of those drilled in Marcellus, showing the scale of this untapped resource.
“The virtual pipeline model has already been deployed in Mendoza, Argentina, where the first LNG-fuelled power plant running entirely on previously stranded gas, is now well established. Now we’re bringing this innovation to the US and rest of the world. With Edge LNG, well-owners can monetize these assets for the first time, and the market benefits from the lowest cost and highest quality LNG available.”
Mark Dickinson, Managing Director, Blue Water Energy, added: “Edge LNG is a truly rare thing: a company solving a global issue that has the industry wringing its hands, with a solution at once both truly innovative and brilliantly simple. LNG is a fuel of the future and Edge LNG can take it anywhere.”
Edge Gathering Virtual Pipelines 2 LLC purchases the Cryobox units directly from manufacturer Galileo Global Technologies, which is also a shareholder along with specialist international private equity firm, Blue Water Energy. Edge LNG also has an agreement with NextEra Energy Marketing LLC to act as exclusive sales and marketing partner in the US. NextEra Energy Marketing, LLC is a wholly-owned and indirect subsidiary of NextEra Energy, Inc., the world’s largest utility company and a pioneer in reimagining America’s energy future.