Seneca Resources Corporation has announced plans to complete the conversion of two of its Pennsylvania drilling rigs to cleaner-burning natural gas in an effort to displace the diesel fuel currently being used to power equipment at the well site. These will be the first 100 per cent dedicated liquefied natural gas-fueled drilling rigs operating in the Marcellus Shale within Pennsylvania. Seneca Resources Corporation is an exploration and production subsidiary of National Fuel Gas Company.
The first two rigs are expected to be converted in the fall of 2012. Seneca will also deploy a third rig that will run on both diesel and natural gas.
“We continually look for opportunities to improve our operations, reduce our costs and minimize our environmental impact. The use of alternative fuels, such as LNG and eventually field gas (natural gas produced from local wells near the drill pad), is just one step in a broader strategic plan to expand the use of natural gas in our drilling program,” said President of Seneca, Matthew D. Cabell. “This change will help reduce our environmental footprint and it is also economically beneficial.”
Industry studies on the use of natural gas have shown a significant reduction in carbon dioxide, volatile organic compounds and nitrogen oxide emissions when compared to diesel. Certain emissions reductions could be as high as 95 per cent.
“National Fuel has been a diligent steward of the environment for more than 100 years and Seneca places this as a top operational priority,” said Chairman and Chief Executive Officer of National Fuel, David F. Smith. “Over the past few years, Seneca has used coal mine drainage water in its drilling program, instituted a ‘zero surface discharge’ policy for produced water and embraced other technology to reduce its environmental footprint. Utilizing natural gas powered drilling rigs furthers Seneca’s long-standing operational excellence.”