CNX Resources Corp. Expands into Westmoreland County with $505 Million Deal
Key Ideas
  • CNX Resources Corp. acquires Apex Energy II LLC in a $505 million deal to expand its operations into Westmoreland County with additional shale gas acreage.
  • The acquisition will contribute 8,600 acres of undeveloped Utica Shale and 12,600 acres of undeveloped Marcellus Shale to CNX's portfolio.
  • CNX plans to build a $1.5 billion facility at Pittsburgh International Airport to produce hydrogen-based fuels, pending approval for coal mine methane to qualify for tax credits.
  • Despite potential criticism from climate change activists, the facility aims to reduce greenhouse gas emissions by blending them with natural gas to create hydrogen-based airline fuel, supported by local labor unions and state officials.
CNX Resources Corp. has announced its acquisition of Pine-based Apex Energy II LLC in a $505 million deal to extend its operations into Westmoreland County. The purchase will bring approximately 36,000 acres of new shale gas territory, comprising 8,600 acres of undeveloped Utica Shale and 12,600 acres of undeveloped Marcellus Shale, into CNX's fold. The company's President and CEO, Nick Deiuliis, expressed enthusiasm for the transaction, emphasizing the value of integrating these assets with its existing operations. CNX, headquartered in Cecil Township, Washington County, already operates in the Appalachian Basin, spanning across multiple states. Additionally, CNX has outlined plans to construct a $1.5 billion facility at the Pittsburgh International Airport for the production of hydrogen-based fuels. However, the realization of this project is contingent on the Biden administration's decision to allow coal mine methane to be eligible for tax credits. The proposed facility aims to mitigate greenhouse gas emissions by converting them into hydrogen-based airline fuel through a process that involves blending them with natural gas. Despite potential opposition from environmental activists who are against fossil fuels receiving tax credits, the initiative has garnered support from local labor unions and key state figures like U.S. Senator Bob Casey. The facility's ultimate goal is to significantly reduce the reliance on traditional jet fuel, with plans to replace a vast majority of the airport's jet fuel consumption with the cleaner hydrogen-based alternative.
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