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Released July 14, 2017 | SUGAR LAND
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Researched by Industrial Info Research (Sugar Land, Texas)--CONSOL Energy Incorporated (NYSE:CNX) (Pittsburgh, Pennsylvania) took an important stride earlier this week in its plan to split into two publicly traded companies: a coal-focused company and a natural gas exploration and production (E&P) company. CONSOL Mining Corporation, a subsidiary that will comprise the coal business at the time of the spin-off, filed a Form 10 registration statement with the U.S. Securities and Exchange Commission (SEC). Industrial Info is tracking $322 million in active projects involving CONSOL.
According to a press release from CONSOL, the coal business will include the Pennsylvania Mining Complex, consisting of the Bailey Mine, the Enlow Fork Mine and the Harvey Mine and its coal preparation plant; CONSOL's ownership interest in CNX Coal Resources LP (NYSE:CNXC) (Canonsburg, Pennsylvania), which owns a 25% interest in the Pennsylvania Mining Complex; a coal export terminal at the Port of Baltimore, Maryland; and undeveloped coal reserves in the Northern Appalachian, Central Appalachian and Illinois basins.
CONSOL has proposed a $250 million expansion of the Bailey Mine in Wind Ridge, Pennsylvania. The coal refuse area at the 12 million-ton-per-year operation will be expanded in three phases, covering more than 1,700 acres that also service the Enlow Fork Mine. The project is in its planning stages, where plenty of factors could increase, decrease or eliminate the expected spending. For more information, see Industrial Info's project report.
The company also has a pair of maintenance-related shutdowns planned for the export terminal in Baltimore, each of which is expected to include normal, two-week inspections and repairs to the 15 million-ton-per-year facility in the third quarters of 2017 and 2018. For more information, see Industrial Info's project reports for this year and next year's shutdowns.
CONSOL has been in business for more than 150 years, during most of which it was one of the leading U.S. coal companies. Just seven years ago, it was the nation's top producer of bituminous coal. But the "dash to gas" and the decreasing economic competitiveness of coal as an energy resource has forced the company further into the natural gas business; tellingly, it's the spinoff that will retain the long-standing "CONSOL Energy Incorporated" name, while the bulk of the current institution will have a new moniker.
On its natural gas side, CONSOL is proposing a $70 million processing plant at Pittsburgh International Airport, which would have a capacity of up to 100 million standard cubic feet per day. In early 2013, the airport and Allegheny County agreed to lease 9,000 acres adjacent to the airport to CONSOL for drilling, according to Marcellus Drilling News. The airport, which sits on the shale play, would receive 18% royalties on any sales from the production. The first six wells began production last year. For more information, see Industrial Info's project report.
The spin-off remains subject to the satisfaction of certain conditions, including approval from CONSOL's board of directors, according to CONSOL's press release. The SEC also must declare the Form 10 effective.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
According to a press release from CONSOL, the coal business will include the Pennsylvania Mining Complex, consisting of the Bailey Mine, the Enlow Fork Mine and the Harvey Mine and its coal preparation plant; CONSOL's ownership interest in CNX Coal Resources LP (NYSE:CNXC) (Canonsburg, Pennsylvania), which owns a 25% interest in the Pennsylvania Mining Complex; a coal export terminal at the Port of Baltimore, Maryland; and undeveloped coal reserves in the Northern Appalachian, Central Appalachian and Illinois basins.
CONSOL has proposed a $250 million expansion of the Bailey Mine in Wind Ridge, Pennsylvania. The coal refuse area at the 12 million-ton-per-year operation will be expanded in three phases, covering more than 1,700 acres that also service the Enlow Fork Mine. The project is in its planning stages, where plenty of factors could increase, decrease or eliminate the expected spending. For more information, see Industrial Info's project report.
The company also has a pair of maintenance-related shutdowns planned for the export terminal in Baltimore, each of which is expected to include normal, two-week inspections and repairs to the 15 million-ton-per-year facility in the third quarters of 2017 and 2018. For more information, see Industrial Info's project reports for this year and next year's shutdowns.
CONSOL has been in business for more than 150 years, during most of which it was one of the leading U.S. coal companies. Just seven years ago, it was the nation's top producer of bituminous coal. But the "dash to gas" and the decreasing economic competitiveness of coal as an energy resource has forced the company further into the natural gas business; tellingly, it's the spinoff that will retain the long-standing "CONSOL Energy Incorporated" name, while the bulk of the current institution will have a new moniker.
On its natural gas side, CONSOL is proposing a $70 million processing plant at Pittsburgh International Airport, which would have a capacity of up to 100 million standard cubic feet per day. In early 2013, the airport and Allegheny County agreed to lease 9,000 acres adjacent to the airport to CONSOL for drilling, according to Marcellus Drilling News. The airport, which sits on the shale play, would receive 18% royalties on any sales from the production. The first six wells began production last year. For more information, see Industrial Info's project report.
The spin-off remains subject to the satisfaction of certain conditions, including approval from CONSOL's board of directors, according to CONSOL's press release. The SEC also must declare the Form 10 effective.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
