Stranded PA Marcellus Gas Converted to LNG, Trucked to New England
Got a well drilled and ready to produce with no prospects of connecting it to a pipeline system any time soon? No problem! We have exciting, breaking news to share. Edge Gathering Virtual Pipelines 2 LLC (EDGE) earlier today announced in May they deployed a special LNG unit to a remote Marcellus well in PA, converting gas from the well into LNG. The LNG was then loaded into a special unit and trucked to a gas utility some 300 miles away in New England. A new “virtual pipeline” is born!
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Although the second quarter isn’t over yet, EQT has just released “preliminary” 2Q19 financial and operational results in a bid to fend off a takeover attempt. EQT’s current management and board of directors is in a tough fight to retain control of the company. Toby and Derek Rice, formerly of Rice Energy (which was sold to EQT in 2017) are making a play to replace the board of directors and all of EQT’s top management.
In the coming month, the U.S.’s seven major shale plays will produce a cumulative 81.4 billion cubic feet (Bcf) of natural gas, the first time U.S. shale production has surpassed 81 Bcf/d. Yesterday our favorite government agency, the U.S. Energy Information Administration, issued our favorite monthly report, the Drilling Productivity Report. The DPR is a forecast of oil and gas production in the country’s major shale plays for the coming month, made by the expert number crunchers at EIA. The Marcellus/Utica is forecast to increase production an amazing 1/3 Bcf in the next 30 days, for a THIRD month in a row. Just incredible.
Mountain Valley Pipeline (MVP), a 303-mile pipeline from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA (now 80% built), may have just found a way to eliminate one of the last remaining obstacles to completing the project. Although MVP’s solution will delay completion and cost more money. In a regulatory filing with the Securities and Exchange Commission made Monday, Equitrans (builder of MVP) announced a deal with the U.S. Department of the Interior to swap ownership of land over which some of the Appalachian Trail travels in return for the right to drill under the Trail.
As we chronicle today in another post, Marcellus/Utica gas continues to break new records for production. In July, the U.S. EIA says “Appalachia” gas production will hit a new all-time high of 32.4 billion cubic feet per day (Bcf/d). Our region doesn’t use anywhere near that much gas, which means we have to find other markets that will use it. So where does all that gas go? And how does it get there? That’s the topic of a recent RBN Energy post that outlines the corridors and pipelines that flow our gas to other markets around the North American continent.
Ann Bristow, Professor Emeritus at Frostburg State University and resident of Garrett County, is once again trying to foment irrational fear of the fossil fuel industry. Bristow was one of the “experts” that kept fracking out of Garrett County (one of two Maryland counties with commercial shale deposits), harming its citizens economically. Now she’s trying to whip up opposition to a regional ethane storage hub that won’t even be located in Maryland.
MARCELLUS/UTICA REGION: Williams completes $3.8B strategic joint venture with CPPIB in Marcellus/Utica; Utica Shale Academy graduation ceremony; EdgeMarc energy gets nod for $108M bankruptcy loan; OTHER U.S. REGIONS: More on the changes coming to Texas Gulf Coast gas markets; NATIONAL: U.S. shale growth is decelerating; Debunking Democrats’ claims about fossil fuel tax breaks; INTERNATIONAL: Having a gas: Australia dominates China’s LNG supply; Russia to boost LNG output fivefold to supply Asia; A failure of OPEC+ could turn the U.S. oil boom into another bust.