Chesapeake positions itself to supply LNG when export capacity increases
Thursday, November 10, 2022
Chesapeake Energy Corp. continues to focus its strategy on supplying natural gas to the Gulf Coast LNG corridor, according to Natural Gas Intelligence.
Demand isn’t expected to grow until new export capacity comes online in 2024, so the company plans to keep production level for much of 2023 and ramp up slowly as 2024 approaches.
Chesapeake will remain bullish on its Marcellus and Haynesville assets, only pulling back production if prices fall to the mid-to-low $3.00/MMBtu range.
Learn more: Natural Gas Intelligence > Chesapeake Aiming to Be Major Natural Gas Supplier in U.S. LNG Capacity Expansion
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Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.