Range Resources begins shipping on Mariner East

Sunoco Logistics' Mariner East propane pipeline was commissioned in late December, according to independent producer Range Resources, earlier than the originally projected first quarter 2015 start-date.

Range has shipped its 80pc share of the 133,000 bl of propane line fill the pipeline requires to operate. In its third quarter earnings call, Sunoco said that it anticipated shipping 20,000 b/d of propane on the line by the end of 2014.

The Mariner East pipeline connects gas processing facilities in the Marcellus shale formation to the Marcus Hook export terminal near Philadelphia, Pennsylvania. The line's initial capacity will be 70,000 b/d of propane, but it will be modified in mid-2015 to run ethane as well. Range resource plans to export ethane to European buyers under a 15-year contract it holds with INEOS.

Range has also signed a multi-year contract for 5,000 b/d of ethane sales on Enterprise Product Partners' Appalachia-to-Texas (Atex) pipeline beginning on 1 January. These barrels represent half of Range's committed volumes on that line. The Atex pipeline connects the Marcellus and Utica shale to Enterprise's facilities in Mont Belvieu, Texas.

Range anticipates 20pc growth in production from its operations in the Marcellus shale in 2015.

mh/tdf

Send comments to feedback@argusmedia.com

Request more information about Argus' energy and commodity news, data and analysis services.

Copyright © 2015 Argus Media Ltd - www.argusmedia.com - All rights reserved.