2019-01-12 / Front Page

Local shale gas bounty confirmed


Seneca Resources recently has also entered into an agreement with pipeline projects being developed by National Fuel and Transco. Subject to regulatory approval, gas from Cameron, Potter and Elk counties would flow through Transco’s Leidy South Project, depicted here, starting in late 2021 or early 2022. Over the past decade, Pennsylvania has risen to become the second largest gas-producing state behind Texas, averaging 15 billion cubic feet a day. While record volumes of natural gas are being produced, consumer access to it is limited by insufficient pipeline infrastructure. Seneca Resources recently has also entered into an agreement with pipeline projects being developed by National Fuel and Transco. Subject to regulatory approval, gas from Cameron, Potter and Elk counties would flow through Transco’s Leidy South Project, depicted here, starting in late 2021 or early 2022. Over the past decade, Pennsylvania has risen to become the second largest gas-producing state behind Texas, averaging 15 billion cubic feet a day. While record volumes of natural gas are being produced, consumer access to it is limited by insufficient pipeline infrastructure. Seneca

Resources stepped up its shale gas drilling activities in 2018 and has issued a rosy forecast for this year and beyond. The company owns tens of thousands of gas rights in Cameron, Potter, Tioga, Elk, McKean, Lycoming and Clarion counties.

Spokesman Rob Boulware said three deepdrilling rigs brought in to produce gas from its Appalachian Basin operations have been busy in recent months as business prospects continue to brighten. Its investments to produce shale gas number in the hundreds of millions of dollars.

Following the lead of JKLM Energy in Potter County, Seneca has shifted its focus from the Marcellus shale formation to the deeper Utica shale, more than two miles underground, where the gas reserves are now confirmed to be bountiful.

Seneca has two rigs active in the local area and a third drilling in Lycoming County. The company has been busy in northwest Cameron County, where it owns 20,000 acres of rights, drilling more than two dozen shale gas wells.

Seneca is forecasting a 25-percent increase in gas production from its Pennsylvania holdings by mid-2019. Meanwhile, the company has been working on interconnect agreements to usher the region’s gas to the worldwide marketplace.

Upwards of 40 percent now flows to markets on the Atlantic coast, and to the new Cove Point (Md.) liquefied natural gas facility for exportation.

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