Prometheus Energy said that it has entered into a master services agreement with WPX Energy to supply LNG plus related equipment and services for WPX’s initiative to utilizing clean-burning natural gas in its drilling operations.
Prometheus will be supplying LNG fuel through its North American network, and providing onsite mobile LNG storage, vaporization equipment and technical services, the company said in a statement.
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.
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Image: Prometheus Energy