Ammonia | CNX Resources | Energy Companies | Hydrogen | Industrywide Issues | Mingo County | West Virginia
CNX to Provide NatGas for WV Hydrogen Hub Clean Ammonia Plant
The ARCH2 (Appalachian Regional Clean Hydrogen Hub) project, the West Virginia-led effort to attract government funding for one of 6-10 regional hydrogen hubs, took a leap forward today with the announcement by Adams Fork Energy, Haldor Topsoe, and CNX Resources Corp. of a plan to build a “multi-billion-dollar” clean ammonia manufacturing facility in southern West Virginia. CNX will provide natural gas to the plant, tentatively scheduled to begin construction in 2024 in Mingo County, WV. The ammonia plant will be an “anchor project” in the ARCH2 Hydrogen Hub application currently under consideration by the U.S. Dept. of Energy.
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Three weeks ago, Chesapeake Energy announced a 15-year deal to provide natural gas for LNG exports to Gunvor Singapore Pte (see 
New shale permits issued for Mar. 20-26 in the Marcellus/Utica dropped by two from the prior week. There were 32 new permits issued in total last week, including 22 new permits for Pennsylvania, 8 new permits for Ohio, and 2 permits in West Virginia. (Note we recently updated last week’s report to include WV permits after the WVDEP fixed its database.) Last week the top receiver of new permits was CNX Resources with 10 new permits spread across two PA counties: Greene and Allegheny. Snyder Brothers received 8 permits in Armstrong County, PA.
The mighty Shell ethane cracker has had “issues” getting and staying fully up to speed. Since it officially went online last November, Shell has received three separate notices of violation (NOVs) for exceeding allowable air pollution limits, largely related to repeated flaring episodes (see 
In a case initially filed last summer in Ohio, a Belmont County mineral rights owner alleges that Rice Drilling (now owned by EQT) drained natural gas from a rock layer it did not have the right to access according to the signed lease. Golden Eagle Resources says the lease allowed Rice to drill down only as far as the Utica Shale layer, which Rice did. However, Golden Eagle says fractures from Rice’s fracking of the Utica layer reached down into the adjacent Point Pleasant layer and drained some of the gas from the Point Pleasant too–and that’s a no-no according to the lease.
Epsilon Energy concentrates most of its effort on developing Marcellus Shale wells in Susquehanna County, PA. Epsilon typically does not do its own drilling. The company joint venture partners with (gives money to) other companies, like Chesapeake Energy, and the other company typically does the drilling. Epsilon issued its fourth quarter and full-year 2022 update last week. The company’s net gas production was 2.49 Bcf (billion cubic feet) in total, not per day, during 4Q22. That number is down 3% from 2.58 Bcf in 3Q21. Epsilon generated revenues of $15.2 million for 4Q22, compared to $13.8 million in 4Q21–up 10%.
CNX has reached a settlement with the Municipal Authority of Westmoreland County (MAWC) in a lawsuit brought by MAWC in 2016 claiming that CNX (and partner Noble Energy) claimed post-production deductions from royalties that should have been paid to MAWC. The original lawsuit sought combined damages of $3.6 million. The final number to be paid by CNX, according to reports, is $600,000.
The mighty Shell ethane cracker seems to have “issues” in getting and staying fully up to speed. We’ve previously reported on a series of emergency flaring episodes at the plant (see 
The sharp analysts at RBN Energy have sifted through the announcements and “guidance” statements from 42 of the country’s major publicly-traded oil and natural gas drillers for 2023. Among them are 11 gas-focused drillers, nine of which have operations in the Marcellus/Utica region. Looking at the list of 11 gas-focused drillers, RBN finds production will be just about the same in 2023 as it was in 2022–projecting a dip of 1% this year. The analysis also finds collectively that the 11 gas-focused drillers will spend around 9% more on drilling this year due to Bidenflation. Spending more to produce the same–not a winning formula for a politician to run on.
In a process that began in December 2021, Olympus Energy (formerly Huntley & Huntley) announced it had contracted with Project Canary to monitor methane emissions from both the company’s drilling operations and the company’s pipeline operations (see 
Diversified Energy (formerly Diversified Gas & Oil), with major assets in the Marcellus/Utica region (and other regions too), owns approximately 8 million acres of leases with close to 70,000 (mostly) conventional oil and gas wells. The company’s business model is to buy lower-producing wells on the cheap and find ways to make them more productive. One of the new ways Diversified is looking to make money with old wells is by mining cryptocurrency at wells in remote locations not hooked to a pipeline network. Diversified wants to try it with a well in northwestern Pennsylvania. Unsurprisingly, it’s generating some controversy…
Back in January, three Marcellus/Utica companies–Chesapeake Energy, EQT, and Equitrans Midstream–launched what the three call the Appalachian Methane Initiative (AMI), a coalition committed to further enhancing methane monitoring throughout the Appalachia Basin, with an aim to reduce methane emissions throughout the region (see 
Two Marshall County, WV landowners with the same last name (brothers? cousins? father/son?) have sued Southwestern Energy accusing the company of “well bashing.” The landowners seek to have the lawsuit certified as a class action. Well bashing happens when drilling a child well near a parent well causes the parent well to lose pressure or become clogged with fracking fluids and sand. Ultimately the child well causes the parent well to become less profitable (i.e., less revenue from royalties for the landowner). The lawsuit says Southwestern is practicing well bashing intentionally–in order to keep lease rates low.
