First Reserve Invests in Two PA Marcellus Gas Pipelines
More pipeline news. First Reserve, an investment company that invests primarily in the energy industry, has just pumped $100 million into a joint venture that will give it 50% ownership in two new pipeline gathering systems in Greene and Clearfield counties in Pennsylvania. Both pipelines service the Marcellus Shale drilling industry in those areas.
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In March 2010, CONSOL Energy (Cecil, PA) paid Dominion Resources $3.5 billion for 500,000 acres of Marcellus Shale gas leases, instantly tripling their lease holdings. Since that time, CONSOL has continued to invest in Marcellus acreage and they now have 750,000 acres under lease. But CONSOL had a problem: Not enough money to develop their vast Marcellus acreage. So they did what is now a common practice—they found a partner to invest. Yesterday, CONSOL and Noble Energy (Houston, TX) announced that Noble will buy a 50 percent interest in 663,350 net undeveloped acres and fund drilling and completion costs in a deal worth $3.4 billion over an eight-year period.