Edge LNG lands new project to monetize stranded Marcellus gas

6/10/2020 worldoil.com

PENNSYLVANIA - 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 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.

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Wow!  That's neat!  I'd like to see that.  I wonder how many skids it comes in on?

And many other interesting questions regarding the technology/service.

"A world-first solution to flaring, venting and stranded wells

Trillions of cubic feet of natural gas are flared, vented or left stranded due to a lack of takeaway capacity or economic alternatives. The Edge LNG gathering virtual pipeline offers a transformative new solution – capturing and converting associated and stranded gas into LNG. No pipeline, no problem."

https://edgelng.com/

Great concept for all that stranded gas. The technology has been there since at least the late 1990's.

But the drawback then was cost. For the Fort Stockton area (California) operation I was involved with, the "gathering and transport fees" to liquify the gas and truck it off was over 75% of the gas price at that time. 

Not a lot left for the operator - especially if they could not pass along these fees to "cost free" royalty owners.

And one other concern - this could put a lot of LNG tanker traffic on the roads.

I'd love to see some cost data from this operation in various areas.

I found this statement of interest.

Additionally, Edge LNG expects this deal to generate surplus LNG beyond these agreements, allowing it to expand its customer base.

I suspect that the peripheral market for LNG is growing.  In the past I can only imagine a re-gasification process for pipeline delivery to existing end users.  Now there are other potential end users.  LNG can be used to fuel frac pumps and can be used for marine fuel now.  For EXCO and other companies that produce natural gas as a by product of oil production,  this would not need to be a significant profit center as long as it is a net gain.  And there is PR value in the fact that it eliminates flaring.

Trucking LNG is only good until there is a wreck.  Looks like China is finding that out.

https://www.foxnews.com/world/china-tanker-truck-explosion-zhejiang...

Transporting many forms of hydrocarbons carries risk.  The crude coming out of the Bakken has high vapor pressure and was responsible for the horrific train accident that almost wiped out the small town of Casselton, ND. And another Bakken crude train exploded in Canada. Both of those wrecks have details which are important and bring up the subject of regulations that might address the dangers.  I don't think that the US cuts as many corners or takes as many safety risks as China but that has become an open question with mass deregulation.

https://www.twincities.com/2018/12/29/5-years-after-n-d-oil-train-d...

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