Ineos, Rex Energy Join to Purchase Appalachian NGLs

“This contract adds to our supply portfolio providing for long-term sourcing of advantageously priced U.S. natural gas liquids for our European crackers,” said David Thompson, CEO of Ineos Trading and Shipping. “We are excited about our new business relationship with Rex Energy and look forward to future opportunities between our companies.” Added Tom Stabley, president and CEO of Rex Energy, “With this new sales agreement, we will now have three different outlets to deliver our natural gas liquids volumes, both domestic and international. The new outlets will enhance the economics of our wells in the Butler Operated Area and our overall resource potential.”

On March 23, Ineos conformed that its vessel, the Ineos Intrepid, had arrived at its petrochemicals plant at Rafnes in Norway, carrying 27,500 cu meters of U.S. shale gas ethane. The shipment marked the first time that ethane from U.S. shale gas had been exported from the country and the first time the product had been imported into Europe. The move gives Europe the chance to benefit from U.S. shale gas economics, which has done much to revitalize manufacturing in the U.S.

The export project has been complex and involves the design and long-term charter of all eight Dragon Class ships, which collectively create a virtual pipeline across the Atlantic Ocean. Also included is the connection of the new 300-mile Mariner East pipeline from the Marcellus Shale in western Pennsylvania to the Marcus Hook deep-water terminal near Philadelphia and the creation of new export facilities and storage tanks. Ineos invested $2 billion to bring U.S. shale gas to Europe. Jim Ratcliffe, chairman and founder of Ineos, said, “Shale economics have revitalized U.S. manufacturing and has the potential to do the same for European manufacturing.”