EQT Launches Pilot Program to Convert Marcellus Rigs to LNG

Washington PA Observer Reporter
20 July 2012

PITTSBURGH EQT Corp. said July 5 it has launched a pilot program to begin converting its drilling rigs to liquefied natural gas, displacing the diesel used to power equipment at the well site.

The company said in a press release the program marks the first LNG rig conversion in the Marcellus Shale and will provide a cleaner burning alternative fuel for the region’s drilling operations.

“We want to be a leader in reducing the environmental impacts related to drilling and we are proud to be the first operator in the Marcellus to launch such a program, said Steve Schlotterbeck, president of exploration and production for EQT.

“We want to be a leader in reducing the environmental impacts related to drilling and we are proud to be the first operator in the Marcellus to launch such a program.

“Along with safety, protection of the environment is top-of-mind for our employees, contractors, and of course communities. We continually look for opportunities to improve our operations and displacing diesel, by introducing the use of alternatives such as LNG and field gas, is one way of doing so,” he said.

LNG is natural gas in its liquid form and is as safe as, or safer than, using traditional fuels, such as propane or diesel. LNG, if exposed, evaporates quickly and leaves no residue on water or soil.

Compared to diesel, natural gas emits between 20 and 30 percent less carbon dioxide and has a fraction of the emissions of nitrogen oxides, sulfur oxides, and particulates.

The company also noted that LNG is a cheaper fuel, costing about 40 percent less than diesel, and is sourced from various U.S. shale plays, helping to reduce dependence on foreign oil. The LNG being used for EQT’s pilot program is produced locally from Marcellus natural gas reserves.

EQT’s initial rig conversion is now operating in Northern West Virginia. Pending evaluation of the pilot program, the company said it hopes to convert additional rigs in West Virginia and Pennsylvania.

Pittsburgh-based EQT is an integrated energy company with emphasis on Appalachian area natural gas production, gathering, transmission, and distribution.