Prometheus Energy signs LNG services agreement with WPX
Prometheus Energy Group has entered into a master services agreement with WPX Energy to supply LNG plus related equipment and services for WPX's initiative to utilize natural gas in its drilling operations.
Prometheus will be supplying LNG fuel through its established North American LNG network, and providing onsite mobile LNG storage, vaporization equipment and technical services.
The agreement initially applies to WPX's operations in the San Juan basin and can be extended to Piceance operations as well.
WPX Energy has primarily utilized field gas over the past two years but has moved into acreage where field gas was not available. Even with a 50-50 split alternating between field gas and LNG, the overall natural gas solution is significantly below diesel costs, even at currently depressed prices for distillate fuel, according to both Prometheus and WPX.
"At the time of commissioning of WPX, our delivered volume of LNG exceeded 100 million gallons, all within the last four years," said Jim Aivalis, CEO of Prometheus Energy. "We are extremely pleased to partner with WPX Energy for the first time and look forward to providing them both LNG and field gas treatment systems in the near future."
"WPX Energy is committed to sustainability and environmental stewardship in everything we do. We are actively expanding our experience with 100% gas drilling, and are very encouraged by the performance," added WPX’s Justin Stolworthy, drilling engineer team lead/San Juan basin.
WPX Energy develops and operates oil and gas producing properties in North Dakota, New Mexico and Colorado.
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