• 4 days Retail On Pace For Most Bankruptcies And Store Closures Ever In One Year: BDO
  • 10 minutes America Could Go Fully Electric Right Now
  • 4 hours Majors Oil COs diversify into Renewables ? What synergies forget have with Solar Panels and Wind Tirbines ? None !
  • 7 hours Something wicked this way comes
  • 15 hours A sneak peak into the US election
  • 3 hours France Sees 10.6% EV Market Share In September — 4× Growth Year On Year
  • 37 mins America's Frontline Doctors - Safely Start Living Again!
  • 4 hours Permian in for Prosperous and Bright Future
  • 1 day covid. stop the carriers and thus stop the virus.
  • 2 days "COVID Kills Another Oil Rally" by Tom Kool 10/16/2020
  • 2 days Is the coal industry on the way out?
  • 7 hours Tesla Model 3 Is September's Top Selling Car of All Vehicles in Switzerland
  • 2 days GPOR - Gulfport Oil - Why?
  • 20 hours California’s Electric Vehicle Dream Has A Major Problem: No
  • 2 days Tucker Carlson responds to CDC after agency critiques commentary about mask-wearing
  • 1 day Vote Biden for Higher Oil Prices
  • 1 day Ethanol present in gasoline
Joao Peixe

Joao Peixe

Joao is a writer for Oilprice.com

More Info

Premium Content

China’s Shenhua Strikes JV Deal in Marcellus

A subsidiary of China’s largest coal company has signed an agreement with Denver-based Energy Corporation of America (ECA) to enter into a 50/50 joint venture to develop 25 natural gas wells in southwestern Pennsylvania’s Marcellus Shale over the next year and half.

Shenhua America Holdings Corp., a subsidiary of China’s Shenhua Energy, will contribute the first $90 million for ECA, the JV’s operator, to drill the wells, while future expenses will be evenly split, according to the agreement.

The 25 wells will be drilling southwestern Pennsylvania’s Green County, and the venture is targeting mostly dry gas, which will likely be sold domestically.

Related article: Flying Robots Could Change The Resource Business (Seriously)

According to ECA COO Kyle Mork, it’s not about exports for China’s Shenhua. “They’re looking at this as an investment in the US more than moving gas back to China.”

The joint venture is expected to produce 3.8 billion cubic meters of gas over the next three decades.

"It is only fitting for these operations to take place in Greene County... 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," CEO John Mork said in a statement.

It was just some two years ago that Shenhua began seeking to get a foothold in North America’s shale plays, and the Greene County deal represents Shenhua’s first foreign venture into shale gas.

Related article: This Unknown Company Is The Biggest Oil Developer Here

Shenhua, founded in 1995, is fully owned by the Chinese government and has 62 coal mines, producing 460 million tons of raw coal in 2012.

ECA has 1 million acres from New York to Tennessee and 4,600 wells and is one of the top five shale gas producers in southwestern Pennsylvania. ECA has 155 active wells in southwestern Pennsylvania and produced about 24 million cubic feet of natural gas in 2012.

By. Joao Peixe of Oilprice.com


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News