A drilling company is moving downstream
COLUMBUS—A Pennsylvania-based natural gas drilling company has received approval from the Public Utilities Commission of Ohio to sell its product directly to retail consumers in that state.
Until now, Rice Energy had sold its natural gas only on the wholesale market. It plans to start retail operations April 1, according to its 742-page application to the PUC.
Rice Energy Marketing LLC is a subsidiary of Rice Energy, based in Canonsburg, Pennsylvania. Rice Energy was incorporated in 2013 for “the purpose of acquisition, exploration and development of natural gas, oil and natural gas liquids in the Appalachian Basin,” according to its application to the PUC. It controls about 336,000 acres in the Marcellus and Utica shale regions and has about 1,200 drilling locations.
“As Rice Energy’s production volumes grow, we are actively seeking out new markets and ways to maximize the value of our gas. Also, we believe in sharing in the cheap and abundant supply of natural gas we are producing with the local markets around us,” the company said in its application.
Rice Energy has direct connections with Dominion East Ohio. It plans to supply natural gas to the residential, commercial and industrial markets.
Rice Energy Marketing currently manages more than 1.4 Bcf/d of natural gas on the wholesale market. REM provides a large amount of supply to marketing companies, who then use it as part of the Dominion East Ohio Choice program.
“It is our intent to provide all ancillary services and functions to be able to do this directly with Dominion in order to reach these customers directly,” the application says. “This may or may not include the need for purchasing third-party supply in order to deliver gas volumes directly to DEO city-gates. Rice Energy is committed to providing reliable, consistent and affordable natural gas supply to local Ohio customers for years to come.” The company said its goal is “to be the paradigm for oil and gas exploration and production companies in the shale generation.”
“We will lead our nation to energy independence while protecting the environment, providing the safest workplace for our employees and partners and generating best-in-class returns to our stakeholders. In doing so, we will illuminate the power of positive energy,” it said in its vision statement.