Hi-Crush signs frac sand deal

By William Clarke
Published: Thursday, 20 December 2018

US sand miner Hi-Crush has signed an offtake deal to supply Northern White frac sand to Chesapeake Energy.

Hi-Crush announced on Monday November 12 that it will supply an unspecified volume of sand to Chesapeake’s operation in the Marcellus basin, in the north-eastern United States, and the Powder River basin, in the north-west of the country. The duration of the deal was also not revealed.

The locations are both relatively close to Hi-Crush’s operations in the US state of Wisconsin, compared with other centers of frac sand demand such as the Permian Basin in west Texas.

The announcement came after Hi-Crush was forced to temporarily idle some frac sand capacity in Wisconsin, due to competition from in-basin sand supplies in Texas and neighboring Oklahoma.