Consol

Consol Energy Inc. on Monday marked a transformative step to advance its natural gas-weighted exploration and production (E&P) business in the Appalachian Basin, not to split the coal operations as some had anticipated, but rather to sell a big coal subsidiary and shift from exploration to exploitation in the Marcellus, Utica and Upper Devonian shales.

The Marcellus Shale Coalition (MSC) should announce a new CEO by the middle of the month, according to the industry group’s chairman.

A federal judge is considering whether five separate cases against EQT Corp. and Consol Energy Corp. should proceed as class action lawsuits, a decision that could potentially add thousands of plaintiffs in Southwest Virginia to those who allege that the companies cheated them out of millions in royalty payments.

Consol Energy Inc. and Pennsylvania’s Allegheny County Airport Authority (ACAA) have unveiled a drilling proposal for Pittsburgh International Airport property that would allow 47 wells to be drilled into airport property overlying the Marcellus Shale, with the potential to explore Upper Devonian targets.

In the article “Consol-Noble JV to Build Marcellus Dry Gas Pipeline” (see Shale Daily, May 29), it was incorrectly reported that a 24-inch diameter dry natural gas pipeline in West Virginia would be completed in six to nine months. The joint venture plans to begin construction of the pipeline in six to nine months, and the time to build and complete the pipeline would be an additional six to nine months. NGI’s Shale Daily regrets the error.

Hess Corp. said Wednesday it plans to spend $6.8 billion on capital expenditures (capex) in 2013, with the largest share — $2.7 billion, or 40% of the exploration and production (E&P) budget of $6.7 billion — devoted to unconventional resources.

Another sign of the shifting world energy market caused by the shale gas revolution is a $7 billion contract announced this week that directs the export of coal — no longer needed in the United States — to India from Kentucky and West Virginia. The 25-year agreement was lauded by Kentucky Gov. Steve Beshear, who called it “an example of a great new market for Kentucky resources.” Kentucky coal companies will export about 9 million tons of coal per year to India’s Abhijeet Group. The coal is being purchased from Kentucky-based affiliates of FJS Energy LLC. A supply glut of natural gas, much of it from shale, has driven gas prices lower than coal this year and intensified the environmental push toward coal-to-gas fuel switching for power generation (see Daily GPI, Aug. 16; Aug. 6). The 25-year contract is an indication that coal producers see stiff competition from natural gas continuing for their product in the United States.

As part of lackluster first quarter results released Wednesday, Hess Corp. said it doesn’t expect to meet production targets in the Bakken Shale this year, but warned analysts to be patient with the company while it shifts its focus from international basins toward its three liquids rich shale plays in the United States.

A new joint venture formed by Crestwood Midstream Partners LP and Crestwood Holdings Partners LLC has acquired a Marcellus Shale gathering system in northern West Virginia owned by Antero Resources Appalachian Corp., the companies announced Monday.