12.04.2016 • NewsbutanecrackersElaine Burridge

Ineos Secures Liquid Gas Supply with Rex Energy

George Clerk/Getty Images
George Clerk/Getty Images

US oil and gas company Rex Energy has agreed to supply natural gas liquids to Ineos for its European crackers. The export deal covers ethane, propane and butane, which will be transported through the Mariner East infrastructure and shipped from the Marcus Hook terminal near Philadelphia to Ineos’ operations in Europe.

Rex started shipping ethane this month and will begin sending propane and butane to Europe in 2017 after the Mariner East 2 pipeline is completed. David Thompson, CEO of Ineos Trading and Shipping, said the contract will provide long-term sourcing of advantageously priced US natural gas liquids for the company’s European crackers.

With the sales agreement, President and CEO of Rex Energy, Tom Stabley, said the the US firm now has three different outlets to deliver its natural gas liquids, both domestic and international. “The new outlets will enhance the economics of our wells in the Butler Operated Area and our overall resource potential,” he said.

Ineos has invested $2 billion to bring US shale gas to Europe. On Mar. 23, the vessel Ineos Intrepid arrived at Rafnes, Norway, carrying a first shipment of US shale-derived ethane. Rex Energy is focused on production and exploration in the Appalachian and Illinois regions. It is active in the Utica and Marcellus shale fields of Ohio and Pennsylvania.

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