INEOS Europe to source ethane feedstock from USA

28 Sep '12

2 min read

INEOS Europe AG has announced that it has completed supply and infrastructure agreements that will secure a significant volume of ethane feedstock from the US, for use in its European cracker complexes.

The company has agreed to a long term deal with Range Resources - Appalachia, LLC for the lifting, of ethane from the Marcus Hook Facility from 2015 The agreement is effective upon Federal Energy Regulatory Commission (FERC) approval of the Mariner East project . Range Resources is one of the leading US independent upstream companies.

David Thompson, Procurement & Supply Chain Director at INEOS Olefins & Polymers Europe says: “The supply deal with Range Resources complements our portfolio of feedstock agreements for our European crackers and will strengthen our competitive position as an ethylene producer in Europe for the foreseeable future”.

INEOS has also finalised Pipeline Transportation Services and Terminal Services Agreements for the shipping of ethane from Houston, Pennsylvania, to Marcus Hook, Pennsylvania, with subsidiaries of Sunoco. The agreements will be valid for a duration of 15 years and will provide INEOS Olefins & Polymers Europe with significant supply options for the future.

It is expected that when completed, the Mariner East Project will transport approximately 70,000 barrels per day of ethane and propane from Houston, Pennsylvania to the Marcus Hook terminal facilities. Ethane will then be separated by fractionation and held in storage ready for shipment to Europe. It is expected that ethane from the Mariner East Project will become available during the first half of 2015.

Commenting on these well timed significant agreements, David Thompson says: “INEOS can now position itself as an attractive customer for upstream companies with interests in the Marcellus, Utica and Upper Devonian gas formations. We will provide these companies with a credible option to diversify sales and supply ethane into our downstream cracker complexes in Europe”.

INEOS Europe

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