Marcellus Shale - Gas Wells

October 29, 2010

Medico taps into gas boom

By Jerry Lynott jlynott@timesleader.com
Business Writer
Jerry Lynott on Facebook   |   @TLJerryLynott on Twitter

PLAINS TWP. – A partnership between Medico Industries Inc. and a South American company looks to tap into the Marcellus Shale natural gas drilling boom with the opening of a manufacturing facility in Hanover Township.

Equipetrol USA LLC grew out of the 30-year relationship between Medico and Equipetrol Venezuela, said Thomas Medico, president of the family-owned machining and construction equipment company.

“It’s a brand new business,” he said earlier this week about the new venture, speaking in his office in Plains Township.

The joint venture will manufacture parts for the multi-port valve used throughout the world in oil and gas production. The operation will be housed in a part of the 150,000-square-foot building MEMCO Realty Co. Ltd. purchased for $5.45 million in the Hanover Industrial Estates. Medico’s metal parts manufacturing business will occupy the remainder of the building.

“We ran out of space,” Medico said of the expansion beyond Medico Industries’ existing building on Route 315.

Medico Industries received a $500,000 low-interest loan through the Luzerne County Business Development Loan program to install and purchase machinery. The company is investing nearly $960,000 in the project. It’s estimated 20 jobs will be created.

But more are expected to be created on the Equipetrol side.

The valves will be sold throughout the world and could find their way into the Marcellus Shale gas fields, said Medico.

“The biggest part of our business is international,” he said, adding it will take some time and persuasion on Equipetrol USA’s part to convince engineers to accept the product in the United States.

“The valve takes seven well heads and puts it into one,” he said. It removes impurities out of gas and oil and also gauges the amount recovered to ensure the proper royalties are paid, he said.

While it works on convincing companies to use the valve stateside, the company will capture some Marcellus business repairing and rethreading the steel casing pipes used in drilling the process, Medico said.

Tweet	Follow @TLnews

Send Question or Remark to the Publisher