Pittsburgh International Airport

Oil and Gas Development

Oil & Gas Development at PIT

Hero Image In July of 2016, Allegheny County Executive Rich Fitzgerald, Allegheny County Airport Authority CEO Christina Cassotis, and CONSOL Energy COO Tim Dugan, announced the commencement of natural gas production at Pittsburgh International Airport.

The event marked a critical next phase of the sweeping natural gas exploration, development and production partnership expected to continue through 2018, and bring hundreds of millions of dollars in economic development activity to the region.

The Airport Authority received a $46 million up-front payment as part of the deal and will receive 18 percent royalties on the gas based on the market rate of natural gas. The beginning of gas production is a significant event which will result in the first royalty payments from CONSOL to the Airport Authority, providing a critical non-aviation revenue stream to help further reduce fees to airlines.

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All six wells on Pad 2 have been turned in-line and are now flowing natural gas into the MarkWest midstream infrastructure system, which was constructed specifically for the project.

Partnership History
  • February 2013 - The Airport Authority leased approximately 9,200 acres at Pittsburgh International and Allegheny County Airport to CONSOL for oil and gas development. At PIT, 6 pads with up to 45 Marcellus wells are planned.
  • July 2013 - Following the initial lease payment of $46 million by CONSOL, the Airport Authority steadily lowered its cost per enplaned Passenger. The average cost per enplaned passenger was cut by 3.8 percent to $14.11.
  • October 2013 - The Airport Authority approved an additional decrease in the cost per enplaned passenger from $14.11 to $13.92.
  • August 2014 - Following a year of site preparations, public hearings and securing local, state and federal permits, CONSOL commenced drilling operations on Pads 1 and 2.
  • October 2014 - The Airport Authority approved another decrease in the cost per enplaned passenger from $13.92 to $12.90.
  • April 2015 - CONSOL commenced hydraulic fracturing/completions on Pad 2 delivering the industry’s first complete fracturing spread powered by EPA Tier 4F emissions standard-compliant engines.
  • October 2015 – The Airport Authority reduced airline rates for the third straight year, lowering the cost per enplaned passenger to $12.88, the lowest since 2008.
  • July 2016 - All six wells on Pad 2 are flowing natural gas into the MarkWest midstream infrastructure system.
About CONSOL Energy

CONSOL Energy Inc. (NYSE: CNX) is a Pittsburgh-based energy producer, and one of the largest independent natural gas exploration, development and production companies, with operations centered in the major shale formations of the Appalachian basin. The company deploys an organic growth strategy focused on developing its substantial resource base. As of December 31, 2016, CONSOL Energy had 6.3 trillion cubic feet equivalent of proved natural gas reserves. CONSOL Energy is a member of the Standard & Poor's Midcap 400 Index. Additional information may be found at www.consolenergy.com.