Range readies for east coast ethane shipments
Range Resources says it will begin shipping ethane to the east coast from the Marcellus Shale region next month.
The notice, according to a press release posted Tuesday on the website of Range, one of the biggest producers of natural gas in the Marcellus, is a result of a recent announcement by Sunoco Logistics that its Mariner East 1 pipeline will be fully operational in February.
According to the Range announcement, Sunoco Logistics confirmed to Oil Price Information Service’s online publication TankTerminals.com that it began the commissioning sequence for ethane startup in December. Sunoco Logistics told OPIS it expected to begin the first ethane supply movements to Marcus Hook refining and shipping complex outside of Philadelphia from the Marcellus Shale region via the Mariner East 1 pipeline in January. Range said its first shipments of ethane from Marcellus production will begin in February.
“With the commencement of Mariner East 1, all three of Range’s major ethane and propane projects are operational, providing Range with a significant overall revenue uplift,” the Range release stated.
Range currently has three ethane projects in its portfolio, which use Mariner West, ATEX, and Mariner East 1. According to Range, more than 70 percent of its ethane is priced at indices other than Mont Belvieu in Texas, which it said provides a unique advantage.
At Range’s option, the remaining portion can be sold as ethane or left in the gas steam as a Btu uplift. The company said it is contracted to ship 20,000 barrels of ethane via pipeline to the Marcus Hook Industrial complex.
Another 20,000 barrels of propane will be shipped via pipeline to Marcus Hook, where it can be sold in either the international market, or the local market, depending on which option yields the best price.
Range said it also has access to propane storage at Marcus Hook, which allows faster loading of ocean-going vessels.
Range said the three agreements five it the ability to sell ethane in Canada, Europe and at Mont Belvieu, as well as future petrochemical facilities in the Appalachian Basin.