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EQT Testing LNG on a Marcellus Rig

July 6, 2012 in HHP, LNG by Rich Piellisch  |  No Comments

Caterpillar Engines Converted by APG with Linde, UGI

Pittsburgh-based EQT Corp has launched a pilot program to convert Marcellus drilling rigs to LNG power, starting with a location in northern West Virginia.
(updated July 9)

Two Caterpillar 3512C engines and a Cat C18 have been converted to dual fuel operation using equipment from the American Power Group, EQT business development director David Ross told F&F Friday.

EQT boasts the first Marcellus Shale drilling rig to be powered by LNG.

Linde, which recently teamed with APG for the oil and gas production market is providing liquefied natural gas equipment. UGI Energy Services is providing the natural gas itself.

“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,” EQT exploration and production president Steve Schlotterbeck said in a release.

“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.

“We see an ever expanding demand for LNG dual fuel applications in the oil and gas, marine, industrial, and heavy-duty vehicular end markets,” APG president and CEO Lyle Jensen said in his firm’s project announcement on July 9. The engines were converted using APG’s “Turbocharged Natural Gas” brand dual fuel equipment.

Cheaper, and Local

“We also are pleased to see our recently announced marketing relationship with Linde North America begin to generate revenue,” Jensen said. “APG is having notable success in converting diesel engines and diesel pumps with well-head and pipeline gas but a majority of the rigs are not logistically close to these sources of fuel so LNG makes perfect sense.”

EQT notes that LNG is about 40% less expensive than diesel, and says that the LNG being used for EQT’s pilot program is produced locally from Marcellus natural gas reserves.

If the experiment in West Virginia proves successful, EQT would move toward converting additional rigs in West Virginia and Pennsylvania.

APG is the operating unit of GreenMan Technologies (OTCQB:GMTI).

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