Galileo Global Technologies announced today the start of its new US based company’s operations: Edge Gathering Virtual Pipelines 2 LLC (Edge).

The new company is commissioning liquefied natural gas (LNG) virtual pipelines to connect shale gas producing fields to consumers of high horsepower equipment without the need to lay pipes.

“We intend to distribute natural gas in a more competitive and efficient way than conventional pipelines in the Marcellus shale region,” says Galileo CEO Osvaldo del Campo.

In order to achieve this, Galileo Technologies has supplied 12 Cryobox-Trailer™ units, which are producing LNG in well sites nearby Ralstone, Pennsylvania. These mobile and small-scale gas liquefaction stations are engineered to liquefy gas right at the wellhead. Once the gas is transformed into LNG, it is transferred by positive pressure to the cryogenic isotanks of the Virtual Pipeline which transport it by road.

The outcome of this array of technological solutions is a Distributed LNG Production model, promoted by Galileo as Third Generation Gas or Gas 3.0™, which enables distribution logistics that are equal to liquid fuels by shortening the distance between new gas sources and consumers.

This makes clean gas fuels readily available for communities eager to replace heating oil, industries, bunkering facilities, heavy-duty fleets or distributed power plants.

One of EDGE’s first customers is Emera Energy Services, Inc., to whom EDGE has delivered over 30,000 gallons of LNG with a delivery point at a New England gas utility over 300 miles away from the Marcellus production site.

“The entire supply chain of Edge will be natural gas powered, including the energy to power the liquefaction units as well as the transportation fuel to deliver LNG by truck,” says Mark Casaday, Edge Gathering Virtual Pipeline CEO.

“Edge will offer the most competitive LNG price available to a market of over 50 million people including the entire Northeast US and MidAtlantic region, since we are able to tap into multiple gas sources and distribute gas regardless of the conventional pipelines and their scale constraints,” adds Casaday

Thanks to the capacity to liquefy gas directly from the wells, the Cryobox-Trailer units operated by EDGE will enable the capture of all flare gas, solving an environmental issue and the exploitation of stranded, shale or tight gas. This innovative equipment, together with the Virtual Pipeline, will allow natural gas distribution at 60%-70% spot market price without price jumps, which will strongly benefit consumers.

On the other side of the natural gas value chain, the solutions provided by EDGE will give upstream producers the chance to monetize gas sources currently out of the system and regardless of their gas producing scale.

Specialist international private equity firm Blue Water Energy is also an Edge’s shareholder along with Galileo Global Technologies. In addition, Edge has an agreement with NextEra Energy Marketing LLC to act as exclusive sales and marketing partner in the US. NextEra Energy Marketing, LLC is a wholly-owned and indirect subsidiary of NextEra Energy, Inc., the world’s largest utility company and a pioneer in reimagining America’s energy future.

Small-Scale LNG Proven Technology

Several Cryobox Cryobox-Trailer units deployed in well sites in the Vaca Muerta shale region in Argentina are producing LNG from on-site gas flare reduction. This LNG is transported via virtual pipeline to the first gas fired power plant that does not require conventional pipelines in the country.

As a result of the consumption of LNG, the price per MW from this power plant is even below the price offered by the other conventional gas fired power plants of the national system.

In addition, the trucks that tow the cryogenic isotanks of the virtual pipeline also run on LNG. This whole small-scale LNG operation eliminates gas flaring at the wells and reduces carbon dioxide (CO2) emissions on every stage: from the exhaust of the trucks by 20% and from distributed power generation by 30%.