WHEELING - Consol Energy has signed an agreement to send ethane to Europe for cracking.
The company will work with Ineos Europe AG to export ethane derived from Consol's Marcellus Shale operations via the Sunoco Mariner East pipeline.
Projected to open for service early next year, the Mariner East pipeline will pump up to 70,000 barrels of ethane per day eastward across Pennsylvania to Marcus Hook, Pa. Workers there will process the material so it can be shipped via sea vessel to Europe.
"This agreement, and others like it, signify a vote of confidence that the Marcellus Shale resource base represents a long-term, reliable energy supply for industrial users both at home and abroad," said Nick DeIuliis, Consol president. "We are pleased to partner with Ineos as we continue to expand upon opportunities to diversify end-user markets for our region's natural gas products."
"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," added David Thompson, Ineos Procurement & Supply Chain director.
Ineos is a global manufacturer of petrochemicals, specialty chemicals and oil products. The company had already reached similar ethane supply agreement with Range Resources for that company's Pennsylvania ethane.
Editor's note: This story updates an earlier version that incorrectly stated Consol would not be supplying ethane to a proposed cracker plant in West Virginia.