Firms reach deal for first ethane shipment from Marcellus

This article was updated shortly after posting online Sept. 27 with additional information.

Ineos Europe AG, Switzerland, has agreed to ship ethane out of the Marcellus area in western Pennsylvania to Europe through the Sunoco Logistics LP-operated Mariner East pipeline for use in Ineos’s European crackers.

The company has agreed to a long-term deal with Range Resources—Appalachia LLC for lifting ethane from the Marcus Hook terminal starting in 2015. The agreement is contingent on approval by the US Federal Energy Regulatory Commission of the Mariner East pipeline. As anchor shipper, Range would have firm transportation of 40,000 b/d (20,000 b/d ethane, 20,000 b/d propane).

Range also would have access to what it describes as a very significant pro rata share of the 1-million bbl of propane storage at Marcus Hook and could use its full capacity commitment for propane deliveries until the ethane facilities are in place. In addition to Marcus Hook’s truck and rail off-loading facilities, potential exists for Range to deliver propane to Mid-Atlantic customers should Sunoco decide to deliver propane through its northeast pipeline system and expand its existing terminal assets.

Ineos also finalized pipeline transportation services and terminal services agreements with subsidiaries of Sunoco for shipping ethane from gas processing near Houston, Pa., to Marcus Hook. The agreements will be valid for 15 years and provide Ineos Olefins & Polymers Europe with “supply options for the future,” the company said.

Ineos expects that, when completed, Mariner East will move about 70,000 b/d of ethane and propane from MarkWest Energy Partners LP processing facilities at Houston, Pa., to Sunoco’s Marcus Hook terminal and dock facilities near Philadelphia. Ethane will then be separated by fractionation and held in storage ready for shipment to Europe. Ethane from the Mariner East Project will become available first-half 2015 after additional treatment capacity is constructed at Marcus Hook. Propane shipments will start second-half 2014 (OGJ Online, Aug. 10, 2012).

In the meantime, MarkWest is transporting on behalf of Range a portion of its Houston-sourced propane to Marcus Hook by rail for sales to domestic and international customers. Walter M. Hart of IHS-Purvin & Gertz noted that a few shipments of propane have lifted from Marcus Hook this year, describing them as the first shipments of propane from the US Northeast since the 1990s.

Ineos Olefins & Polymers Europe operates as a business unit within Ineos Europe AG running an olefins portfolio built around four key integrated cracker and derivative complexes:

• Grangemouth, UK.

• Koln, Germany.

• Lavera, France (Naphtachimie—a 50:50 joint venture of Ineos and Total Petrochemicals).

• Rafnes, Norway.

Peter Fasullo, principal cofounder of EnVantage Inc., remarked that the trans-Atlantic shipments would be the first overseas transportation of purity grade ethane, such trade more typically occurring on shorter routes like the North Sea market.

Related Articles

West Cornwall Township hears from Sunoco Logistics

12/12/2014

Sunoco Logistics Partners outlined its safety systems during a West Cornwall Township meeting in Pennsylvania on Nov. 10.

ETP eyes larger capacity for planned Bakken pipe

12/12/2014 Energy Transfer Partners LP has launched a binding expansion open season to boost capacity on a planned pipeline system that would move oil from th...

Kinder Morgan to deliver natural gas to Corpus Christi Liquefaction

12/11/2014 Kinder Morgan Inc. (KMI) companies Kinder Morgan Texas Pipeline, Kinder Morgan Tejas Pipeline, and Tennessee Gas Pipeline Co. (TGP) have entered in...

Rosneft, Essar sign terms of oil supply agreement

12/11/2014 OAO Rosneft and Essar Energy PLC have signed key terms of an oil supply agreement in New Delhi. Rosneft said shipments to India may begin in 2015.

Barton introduces bill to remove US crude export limits

12/11/2014

US Rep. Joe Barton (R-Tex.) introduced legislation that would remove US crude oil export limits that have been in place for nearly 40 years.

BG agrees to sale of Australian gas pipeline to APA Group

12/10/2014

BG Group PLC agreed to sell its wholly owned subsidiary Queensland Curtis LNG Pipeline Pty. Ltd. (QCLNG) to APA Group for about $5 billion.

More West Texas gathering, processing to come onstream

12/09/2014 EagleClaw Midstream Services LLC, Midland, Tex., has bought natural gas gathering and processing in Reeves County, Tex. The company declined to ide...

Methane controls just part of complete climate strategy, speakers say

12/08/2014 Reducing oil and gas operations’ methane emissions is an essential, but far from the only, part of a comprehensive climate strategy, speakers at a ...

Rail tank car rule could cost economy billions, report says

12/08/2014 The US Pipeline and Hazardous Materials Safety Administration's (PHMSA) proposed rail tank car rule could cost the US economy as much as $60 billio...

White Papers

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts


On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected