LNG

Edge LNG, a US company involved in delivering LNG to market by converting stranded and flared natural gas, has unveiled its new facility in Midland in Texas to meet growing demand for its services.

The new premises will hold operating equipment of both Edge LNG and Galileo Technologies, it’s exclusive technology partner, and will additionally be home to the first training center for both companies.

Located in the heart of the Permian Basin, the 10,000 square feet premises allows Edge LNG access to all major transport links which are vital in the transportation of LNG.

The new site will act as a focal point for Edge LNG’s Permian operations, bringing the company closer to its customers.

It will allow customers to see equipment first-hand and offer the opportunity to attend training sessions to better understand the company’s business model and operations.

“This is an exciting time for the LNG market and after a challenging year we are seeing growth in the Permian,” said Jonathan Brignac, Vice President of Business Development at Edge LNG.

“Not only does the opening of our facility underline our commitment to our customers, it highlights our commitment to the Permian, where we see so much opportunity and potential to expand our business,” added Brignac.

“Our investment here allows us to provide a cleaner alternative to diesel for operators, replace the need for flaring or venting and unlock the potential of stranded wells,” he explained.

Edge LNG has marketed the trade-marked Cryobox-Trailer, designed and manufactured by Galileo Technologies.

Each unit can produce around 10,000 gallons (15 metric tons) of LNG per day, directly from the well or flare.

Galileo Technologies is both an investor and exclusive technology partner of Edge LNG.

Edge LNG said its new office is located at 6412 S County Road in Midland.

The company said its proven Cryobox technology is ideal for mobile liquefaction and is delivered by trailer.

Each Cryobox unit can begin production within hours and can convert 1 million BTU of gas per day.

Founded in 2018, Edge LNG’s unit, Edge Gathering Virtual Pipelines 2 LLC, purchases the Cryobox units directly from manufacturer Galileo Global, which is also a shareholder.

Edge LNG of the US, whose shareholders include specialist international private equity firm Blue Water Energy and Galileo Global Technologies, has been selected by Exco Resources to capture and liquefy gas from a stranded well in the Marcellus Shale in Pennsylvania.

The Edge-Exco agreement will see Edge LNG deploy its fully mobile, truck-delivered LNG equipment to the Marcellus site, including three Cryobox liquefaction units, with the potential to expand through the deployment of additional units.

“Initial operations are underway and expected to continue through 2022,” said Edge LNG.

“The unique process, created by Galileo Global Technologies and deployed exclusively by Edge LNG in North America, can be delivered to any site accessible by road,” it added.

“After set-up and safety checks, production can begin within hours, with minimal investment required of the site owner and no need for pipeline infrastructure,” stated Edge LNG.

The company will both produce the LNG and purchase it from Exco.

This LNG will then be sold and delivered to customers in the northeast region via its truck-based delivery system whereby it will be used to provide natural gas to homes and businesses.

Additionally, Edge LNG said it expected this deal to generate surplus LNG beyond these agreements, allowing it to expand its customer base.

“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,” said Mark Casaday, Chief Executive of Edge LNG.

“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 US,” added Casaday.

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

“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,” said Casaday.

“The environmental and cost efficiencies the Edge LNG solution can bring, are considerable and it is great to see producers recognizing this,” he added.

This latest Edge announcement follows other deals completed in recent months, which saw the company successfully monetize other producers’ sources of previously stranded gas in the Marcellus and deliver it as LNG to New England utilities.