Page 10 - GLNG Week 05

GLNG AMERICAS GLNG
Edge LNG to liquefy, ship gas from second Marcellus project
PIPELINES & TRANSPORT
SOME producers in the proli c Marcellus shale are turning to small-scale LNG in order to cir- cumvent challenges posed by a lack of pipeline and gas-gathering capacity in the more remote areas of the play. Reports emerged last week that Edge LNG had been awarded a contract by a major Marcellus producer to capture and liq- uefy gas from its stranded wells in Pennsylvania’s Tioga County.
e name of the producer has not been dis- closed. However, the contract would initially involve the installation of two Cryobox liq- uefaction units. e Cryobox technology was created by Galileo Global Technologies and is deployed exclusively by Edge in North Amer- ica. e units can be delivered by truck to any site accessible by road. is can make them an attractive option for producers that have been stung by low natural gas prices and are con- cerned about investing in new gas-gathering infrastructure at this time, but have wells in
remote locations that can be brought online. Each Cryobox unit can produce roughly 10,000 US gallons (15 tonnes) per day of LNG, directly from the well or flare. This process requires around 1mn cubic feet (28,320 cubic metres) per day of feed gas, of which around 75%
is lique ed, while the remainder is used as fuel. Edge will purchase the LNG from the gas pro- ducer and will deliver it by truck to its existing customers in the region. Over the coming year the company expects to add 3-4 more locations,
each with 2-4 Cryobox units.
e deal is Edge’s second in the Marcellus,
where it is targeting stranded gas. e company also has operations in the Bakken play and the Permian Basin, where stranded gas is routinely ared, in a bid to help reduce the rates of aring in those regions.
Galileo, the developer of Cryobox technol- ogy, is also a shareholder in Edge, as is the private equity rm Blue Water Energy.™
ASIA
Gazprom eyes increased role in Bangladesh
PROJECTS & COMPANIES
RUSSIA’S Gazprom signed memoranda of understandings (MoUs) on January 28 with Bangladesh’s state oil company Petrobangla and its subsidiary Bapex on joint upstream activities.
e deal with Petrobangla covers strategic co-operation in the exploration, production and transportation of hydrocarbons, the Bangladeshi company said in a statement. Meanwhile, the document with Bapex, Petrobangla’s upstream arm, provides for joint seismic studies and other activity at two gas elds on Bangladesh’s Bhola Island.
Bangladesh is a major gas producer in its own right, extracting 27.5bn cubic metres in 2018, according to BP statistics. But the country began struggling with shortages several years ago as a result of soaring demand for gas among house- holds and in the power generation sector.
ese shortages have led to rolling blackouts – a key drag on economic growth.
Bangladesh’s solution has been to invest more in domestic gas production on the one hand, and expand imports of LNG on the other. It commis- sioned its rst LNG terminal o Maheshkhali Island in late 2018, and began receiving 2.5mn tonnes per year of supplies under a deal with Qatar. Its LNG intake is slated to reach 10-15mn tpy within ve years, assuming new regasi ca- tion capacity is built.
Gazprom has been working in Bangla- desh since 2012, under drilling contracts with Petrobangla, Bapex and other state entities. rough the latest deals, the Russian company hopes to expand its footprint in a fast-growing market. It may also be hoping to develop gas that can be sold to consumers in neighbouring India. In addition, strengthening ties with Bangladeshi partners will also help Gazprom bid for new LNG supply contracts in the country.
Yamal LNG, an LNG terminal operated by Gazprom’s domestic rival Novatek, shipped its rst LNG cargo to Bangladesh in December. e cargo was supplied under the project’s long-term o ake agreement with France’s Total.™
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w w w. N E W S B A S E . c o m Week 05 06•February•2020