Range in LNG, ethane shipping deals

Jul 23, 2014

Range Resources Corp. said Thursday it had reached agreements to bring Marcellus Shale gas from Pennsylvania to Ontario and the Gulf Coast as well as supplying ethane to potential petrochemical plants in West Virginia and Louisiana.

No financial terms of the deals were announced.

The shipment agreement with Energy Transfer Partners (NYSE: ETP) concerns the ET Rover pipeline that will ship 400 million BTUs of natural gas a day beginning in October 2007 to Dawn, Ontario, and the Gulf Coast. There are also liquid natural gas supply contracts for Cheniere Energy Inc.'s (NYSE: LNG) Sabine Pass LNG terminal in the Gulf Coast as well as a 10-year LNG agreement with another, unidentified shipper.

"Range is in active discussions with several major international companies to supply natural gas to other LNG facilities," Range Resources (NYSE: RRC) said in a prepared statement.

The ethane agreements would supply the Ascent petrochemical complex planned for Parkersburg, W.Va., by Odebrecht with 5,000 barrels a day of Range ethane for 15 years. The other deal brings a potential for 10,000 barrels a day of ethane for a cracker project in Lake Charles, La., proposed by Sasol Ltd. (NYSE: SSL).

"The Rover pipeline provides Range flexibility in selling natural gas to high-demand markets in Canada and the Gulf Coast, while the LNG and ethane supply agreements further diversify and strengthen our customer base with industry-leading companies," said Range Resources CEO Jeff Ventura in a prepared statement. "Importantly, these various contracts support our plan to grow production by 20 percent to 25 percent for many years, giving us base contracts in place with leading companies in key areas that allow for possible future expansion."

Source: (Pittsburgh Tribune-Review)