Joint venture to develop gas wells in Pennsylvania county - WTRF 7 News Sports Weather - Wheeling Steubenville

Joint venture to develop gas wells in Pennsylvania county

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  • Many WV coal counties losing revenue

    Many WV coal counties losing revenue

    Monday, August 8 2016 10:15 AM EDT2016-08-08 14:15:05 GMT

    As Appalachian coal production continues its drastic decline, West Virginia’s coal-producing counties are  not only losing people as lifelong residents are forced to flee their homes in order to find work, but in many cases, they’re also relinquishing millions of dollars from their budgets.

    As Appalachian coal production continues its drastic decline, West Virginia’s coal-producing counties are  not only losing people as lifelong residents are forced to flee their homes in order to find work, but in many cases, they’re also relinquishing millions of dollars from their budgets.

Denver-based Energy Corporation of America and Shenhua America Holdings Corporation are teaming up to develop 25 natural gas wells in Greene County, Pa., over the next 18 months.

Shenhua America is a subsidiary of  China Shenhua Energy Company, a state-owned enterprise and the largest coal company in the world. ECA,  founded in 1963, actively pursues the exploration, extraction, production and transportation of natural gas and oil, both in the United States and around the world.

ECA CEO John Mork said Shenhua will contribute the first $90 million towards drilling the wells, while ECA will operate the properties. Any remaining capital expenditures will be split evenly between the two companies.

"It is only fitting for these operations to take place in Greene County," Mork said. "This area of Appalachia has been at the center of ECA's Marcellus development, as well as a hotbed of Marcellus development."

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