EQT Confirms Plan to Produce Jet Fuel from NatGas, but Few Details
Yesterday, we brought you the great news that the Marcellus/Utica region scored one of seven major hydrogen hub project grants being dished out by the Bidenistas (see Hydrogen Hub Winners Announced – WV Takes Prize in M-U Region). As we pointed out, West Virginia is the big winner, hosting most of the 15 projects associated with the Appalachian Regional Clean Hydrogen Hub (ARCH2). However, other states, including Ohio, Kentucky, and even Pennsylvania, will also benefit by having some projects related to ARCH2 funding located in those respective states. One such project, that we are just now becoming aware of, is a plan by EQT to manufacture low-carbon aviation fuel using natural gas as a feedstock.
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Nearly one year after EQT announced a deal to buy privately-owned Tug Hill Operating’s West Virginia shale assets for roughly $5.2 billion (see 
Last November, MDN told you about a lawsuit filed by a family in Washington County, PA, against Chevron (now EQT) for drilling and fracking done in 2011-2012 near the family’s home (see 
New shale permits issued for Sep 25 – Oct 1 in the Marcellus/Utica were up a few ticks from the previous week. There were 23 new permits issued last week, up from 21 permits issued two weeks ago. Last week’s permit tally included 10 new permits in Pennsylvania, no new permits in Ohio, and a surprising 13 new permits in West Virginia. Two companies tied for top permittee, one you know, one you may not know. Olympus Energy received 5 permits to drill in Westmoreland County, PA. Consol Mining Company received 5 permits to drill in Monongalia County, WV. Consol used to own CNX Resources before spinning off CNX into its own company. Consol concentrates on coal mining. We were surprised to see Consol wandering back into shale drilling.
According to an analysis by S&P Global Commodity Insights, large U.S. shale gas drillers (namely Marcellus/Utica drillers) have hedged (pre-sold at a specific price) an average of 50% of anticipated shale gas production for the second half of 2023. The average price of the hedges is $3.35/Mcf, far above the average NYMEX Henry Hub price that has been bumping along between $2.25 and $2.75. CNX Resources is the top hedger, hedging 80% of its production in 2H23 at $3.04/Mcf.
In August, the Executive Director of the Susquehanna River Basin Commission (SRBC) approved 34 water-use permits for individual shale gas well drilling pads in Bradford, Lycoming, Sullivan, Susquehanna, and Tioga counties. We’re just learning of the action via an official notice published in the Sept. 23 edition of the Pennsylvania Bulletin. The approvals, which are NOT subject to public review according to SRBC regulations, are general water permits. Each site will be required to receive a specific water withdrawal approval at a later date.
The highly functional and responsible Susquehanna River Basin Commission (SRBC), unlike its completely dysfunctional and irresponsible cousin, the Delaware River Basin Commission (DRBC), continues to support the shale energy industry by approving water withdrawals for responsible and safe shale drilling. Last week, the SRBC approved 22 new water withdrawal requests within the basin, eight of which are for water used in drilling and fracking shale wells in Pennsylvania. The Marcellus/Utica shale drillers receiving a green light from SRBC included BKV (Banpu), Coterra Energy, EQT, Inflection Energy, Repsol (2 requests), Seneca Resources, and S.T.L. Resources.
Investors in shale oil and gas companies suffered for years with little or no returns for the money they invested. Five of eight large Marcellus/Utica drillers saw their share prices decrease by an astonishing 85% or more from 2008 to 2019 (see 
Commonwealth LNG is developing a 9.3 MTPA (million tons per annum) liquefied natural gas (LNG) export terminal project located on the Calcasieu River in the Gulf of Mexico near Cameron, Louisiana. Commonwealth anticipates a final investment decision for the project in the first quarter of 2024, with the first cargo deliveries expected in 2027. According to an announcement yesterday, just over 10% of the gas that will get liquefied and exported will come from EQT Corporation’s Marcellus/Utica operations.