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First LNG-Fueled Drilling Rigs Uses GE Gas Engines

Manufacturing Group | November 28, 2012

Reduces Environmental Impacts and Improves Economic Performance of Unconventional Gas Production Activities

First LNG-Fueled Drilling Rigs Uses GE Gas Engines

To reduce the environmental impacts and improve the economic performance of its U.S. unconventional gas production activities, energy developer Seneca Resources Corp. and drilling partner Ensign Drilling have installed two of GE’s Jenbacher gas engines to power the first liquefied natural gas (LNG)-fueled drilling rigs of their kind in the Marcellus Shale region of Pennsylvania.

Seneca converted the power plants of two existing diesel-powered rigs to use cleaner-burning LNG in GE’s 1MW Jenbacher J320 turbocharged natural gas engines. The Jenbacher units were combined with Ensign Drilling-designed rig packages to provide all the electricity needed by each drilling rig. The J320 represents GE’s first U.S. Environmental Protection Agency certified technology for mobile and stationary drilling applications.

In October 2012, Seneca Resources and Ensign Drilling converted their first rig, which is operating in Lycoming County, PA. The second rig was converted to LNG in November 2012 and was assigned to Seneca’s Marcellus Shale gas leases in Forest, Elk, Jefferson and McKean counties.

The gas-rich Marcellus Shale formation is located in sections of Pennsylvania, New York, West Virginia, Ohio, and Maryland.

Ensign Drilling operates 15 drilling rigs exclusively on natural gas in the United States—with 11 of them exclusively using GE’s Jenbacher gas engines. The latest project with Seneca Resources further underscores the oil and gas industry’s increased deployment of more efficient and cleaner on-site power solutions.

Powering a drill rig with natural gas instead of diesel can result in 60%lower fuel costs. LNG also represents a cleaner alternative to diesel for the transportation industry and trucks, reducing overall combustion emissions up to 25%. Truck fleets also can often reduce fuel costs by more than 25% with LNG.

Unconventional gas is quickly becoming the most abundant source of natural gas in the U.S. and now accounts for about a quarter of U.S. natural gas production. By 2035, half of U.S. natural gas will come from unconventional sources, according to the U.S. Energy Information Administration. The boom in unconventional gas, up from just two percent of the total in 2000, has cut gas prices to record levels, reduced energy imports and set the country on a path to energy independence. It also is a major force driving the job market.

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