Consol Energy Inc. said Thursday it has struck a deal to send ethane produced in the Marcellus Shale of western Pennsylvania on Sunoco Logistics Partners LP's Mariner East pipeline for export to European cracker complexes.
The ethane would be shipped through the Mariner East pipeline to a terminal in Marcus Hook, PA, on the Delaware River south of Philadelphia. The deal is the second such agreement Consol has announced after it recently said it would supply ethane to Royal Dutch Shell plc's planned cracker facility in Beaver County, PA.
"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 Consol President Nick Deluliis.
Consol entered the agreement with Ineos Europe AG, a part of the Switzerland-based chemical company Ineos Group. The ethane will be processed at and shipped from the Marcus Hook facility to domestic and export markets and reach Ineos' cracker facilities in Europe.
Mariner East is expected to have the ability to transport propane by the second half of this year, while the pipeline is anticipated to be fully operational and delivering ethane sometime in the first half of 2015 (see Shale Daily, Sept. 9, 2013; Dec. 5, 2013).