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US, Chinese companies sign JV to explore Marcellus gas

07th January 2014

ECA and world’s biggest coal company Shenhua join efforts to develop 25 natural gas wells in Marcellus hydrocarbon 'hotbed'

US, Chinese companies sign JV to explore Marcellus gas
Shenhua America Holdings Corporation will put up an initial USD 90m to drill the wells

Energy Corporation of America (ECA), a Denver-based oil and natural gas producer, has announced that it will team up with China Shenhua Energy Company, the world’s biggest coal company, to develop 25 natural gas wells over the next 18 months in the Marcellus formation in southwestern Pennsylvania (PA).

 

The partnership was formalised via a 50/50 joint venture between ECA and Shenhua America Holdings Corporation, Shenhua’s US subsidiary.

 

Under the JV, Shenhua America Holdings Corporation will put up an initial USD 90m to drill the wells, while ECA will be the operator of the properties. Additional capital expenditures will be split equally between the two entities, the US oil and natural gas producer said in a written statement.

 

The wells are located in Green County, PA, an area which ECA CEO John Mork described as a “hotbed of Marcellus development” and as being at the centre of ECA’s operations in the formation.