Shenhua, ECA form Marcellus-focused joint venture

Energy Corporation of America (ECA) and China Shenhua Energy Co. subsidiary Shenhua America Holdings Corp. (Shenhua) report that the two companies have entered into a 50/50 joint venture to develop 25 natural gas wells in Greene County, Pennsylvania, in the Marcellus shale play, over the next 18 months.

Shenhua will contribute the first $90 million toward drilling the wells, and ECA will be the operator of the properties. Any remaining capital expenditures will be split evenly between the two companies.

According to China Daily, the project – which is slated to produce 3.8 billion cubic meters of gas over the next three decades – is Shenhua’s first foreign venture into shale gas.

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