• 5 minutes Covid-19 logarithmic growth
  • 8 minutes Why Trump Is Right to Re-Open the Economy
  • 12 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 14 minutes China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 2 hours Cpt Lauren Dowsett
  • 2 hours Trump will meet with executives in the energy industry to discuss the impact of COVID-19
  • 48 mins Its going to be an oil bloodbath
  • 1 hour Marine based energy generation
  • 14 mins What If ‘We’d Adopted A More Conventional Response To This Epidemic?’
  • 6 hours Which producers will shut in first?
  • 3 hours CDC covid19 coverup?
  • 3 hours How to Create a Pandemic
  • 3 hours Iran-Turkey gas pipeline goes kaboom. Bad people blamed.
  • 22 hours The Most Annoying Person You Have Encountered During Lockdown
  • 14 hours The idea that electric cars are lowering demand is ridiculous.
  • 15 hours Russia's Rosneft Oil Company announces termination of its activity in Venezuela
  • 20 hours Natural gas price to spike when USA is out of the market

Breaking News:

IEA: OPEC Can’t Save The Oil Market

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