Marcellus LNG Firm Sees Permian and Bakken Opportunities

EXCO Resources has selected Edge Gathering Virtual Pipelines 2 LLC (Edge LNG) to capture and liquefy natural gas from a stranded well in the Marcellus Shale, Edge LNG reported Wednesday.

“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,” Edge LNG CEO Mark Casaday commented in a written statement emailed to Rigzone. “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 U.S.”

In its deal with EXCO, Edge LNG will deploy its mobile, truck-delivered LNG equipment to the Marcellus site. The firm stated the equipment includes three trailer-based “Cryobox” liquefaction units. It explained the process – created by Galileo Global Technologies and deployed exclusively by Edge LNG in North America – requires minimal investment from the site owner and can be delivered to any site with road access. It also noted the process can start producing LNG within hours and needs no pipeline infrastructure.

Under the agreement, Edge LNG will produce the LNG and purchase it from EXCO. The firm noted that it will then sell the LNG and deliver it to customers through its truck-based “virtual pipeline,” providing the fuel for homes and businesses in the Northeast. Each Cryobox unit can convert 1 million British thermal units of gas per day into approximately 10,000 gallons of LNG during the period, the company maintains.

“In a challenging operating environment, we can help operators by maximizing the value of their assets and providing new sources of revenue,” stated Casaday. “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.”

Edge LNG, whose shareholders include Galileo and private equity firm Blue Water Energy, noted that operations for EXCO have begun and will likely continue through 2022.

To contact the author, email mveazey@rigzone.com.