Under a new deal announced Monday by Houston-based Prometheus Energy Group Inc., Apache Corp. will expand its use of liquefied natural gas (LNG) in drilling and hydraulic fracturing (fracking) operations. The agreement is an expansion of an existing contract between the two Houston-based energy companies.

Prometheus will allow Apache to use dual-fuel and dedicated natural gas-powered drilling rigs as well as fracking pumping engines for Apache's oilfield service providers.

Prometheus is a major supplier of LNG to the oil/gas, mine hauling, process industry and remote power generation sectors. "The collaboration has resulted in a direct supplier-to-operator fuel platform to provide Apache with the ability to utilize LNG, a cleaner-burning alternative gas over other fossil fuels, powering multiple drilling rigs and frack spreads," Prometheus said.

During the past year, Prometheus has helped Apache fulfill its strategy of reducing the emissions from its operations, along with lowering the costs of its E&P activities, the company said. The expanded agreement provides for Prometheus managing Apache's LNG supply, logistics and delivery, providing onsite LNG storage and regasification equipment, technical field services for Apache's drilling and completion operations.

Apache Executive Vice President Mike Bahorich said the company is evaluating all of its options for using field gas as both LNG and compressed natural gas (CNG) in its operations.