Range Resources executed an ethane sales contract with NOVA Chemicals at the conclusion of a successful open season for MarkWest’s and Sunoco’s Mariner West Project. The pipeline will transfer ethane from MarkWest facilities in southwest Pennsylvania to Marysville, Michigan and on to Sarnia, Ontario. First deliveries are expected some time early 2014.
Finding suitable markets for the potential glut of ethane in the northeast will be important for maximizing the value of Marcellus Shale hydrocarbons.
Range Resources Corporation (NYSE: RRC) today announced the execution of the first ethane sales contract for its Marcellus Shale liquid-rich gas in southwestern Pennsylvania. The contract between NOVA Chemicals Corporation of Calgary, Alberta Canada and a wholly-owned subsidiary of Range Resources Corporation became effective after the successful conclusion of the binding open season of the Mariner West Project. The Mariner West Project is a Marcellus Shale ethane pipeline project jointly developed by Sunoco Logistics Partners L.P. (NYSE: SXL) and MarkWest Liberty Midstream & Resources, LLC, a partnership between MarkWest Energy Partners, L.P. (NYSE: MWE) and The Energy & Minerals Group. Sunoco Logistics will transport ethane through its Mariner West system from MarkWest’s processing and fractionation facilities in southwest Pennsylvania to the international border near Marysville, Michigan for further delivery into the Sarnia, Ontario petrochemical market. Initial deliveries of ethane under contract are expected to commence in late 2013 with full delivery commencing in early 2014.
Read the full press release at rangeresources.com