Edge LNG has been selected by an undisclosed producer to capture and liquefy gas at its stranded wells in Tioga County in the Marcellus basin.
Under the deal, Edge LNG will deploy its mobile, truck-delivered liquefied natural gas (LNG) equipment clusters to the Marcellus well site.
According to the company, each cluster includes two Cryobox liquefaction units that employ a process developed by Galileo Global Technologies and deployed exclusively by Edge LNG in North America.
The company noted that the deal will transform previously stranded gas into profitable LNG.
The latest move comes after Edge LNG’s US launch and first deal earlier this year, which saw the company monetising a source of previously stranded gas in the Marcellus basin. This gas was delivered as LNG to a New England utility.
Edge LNG CEO Mark Casaday said: “The Marcellus is an important region for us, there is lots of potential here with a large number of stranded wells. So much gas goes unharnessed, purely because a lack of access to a pipeline has meant there is no economic way to take it to market.
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By GlobalData“We provide operators with an opportunity to profit from wells that would otherwise not be used and we make it into valuable fuel. It’s a win-win solution.”
The company said that it will purchase LNG from the producer and deliver the fuel to regional customers via its truck-based virtual pipeline.
Edge LNG has also signed an agreement to supply LNG to the City of Norwich, Connecticut, which will provide natural gas to residential purposes and other businesses.
Edge LNG stated that the initial operations at the Tioga County site are currently underway and are set to continue until 2022.
Global private equity firm Blue Water Energy and Galileo Global Technologies are part of the company’s stakeholders.