Region's shale gas will help fuel India

Sam Kusic

Staff Reporter- Pittsburgh Business Times

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An Indian natural gas company has signed a long-term agreement to buy natural gas sourced from the region's shale fields.

Over the next 20 years, the midstream subsidiary of Washington, D.C.-based WGL Holdings Inc. will be selling between 3.4 million and 4.3 million cubic feet of natural gas to India's leading natural gas company, Gail Ltd.

The gas will be piped to Dominion's Cove Point export facility along the shores of the Chesapeake Bay. There it will be liquefied and shipped overseas.

The agreement takes effect once the facility is completed – it's under construction now as its being converted from an import facility to an export facility. The Federal Energy Regulatory Commission approved the project in September.

WGL said the majority of the gas -- 3.3 million cubic feet -- will sourced through an existing agreement between its WGL Midstream subsidiary and Antero Resources Corp.

Antero operates in eastern Ohio's Utica fields and southwestern Pennsylvania's and northern West Virginia's Marcellus fields.

Sam Kusic covers energy for the Pittsburgh Business Times.