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Coal company invests in natural gas drilling

World Coal,


The largest coal company in the world, China’s state-owned Shenhua Energy Company, has committed to drilling for natural gas in southwestern Pennsylvania.

On 27th December 2013, officials from Energy Corporation of America (ECA) and Shenua Energy subsidiary, Shenhua America Holdings Corporation, announced that the two companies have entered into a 50/50 joint venture to develop 25 natural gas wells in Greene County, PA, over a period of 18 months.

According to ECA CEO John Mork, Shenhua will contribute the first US$ 90 million towards drilling the wells and ECA will be the operator of the properties. Any remaining capital expenditures will be split evenly between the two companies.

Mork commented: “It is only fitting for these operations to take place in Greene County. This area of Appalachia has been at the centre of ECA’s Marcellus development, as well as a hotbed of Marcellus development. We have an outstanding track record there, an excellent reputation, respect from local community members and leaders, and extensive experience working in the Marcellus. And – we are experts in shale gas development. We are very pleased to be working with Shenhua on this joint venture and this is only the beginning of what, I hope, will be a long, mutually-beneficial working relationship.”

Edited from various sources by Katie Woodward

Read the article online at: https://www.worldcoal.com/coal/06012014/coal_company_to_drill_for_gas_379/


 

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