Consol signs deal to sell ethane to European chemical manufacturer
CANONSBURG – Consol Energy Inc. has signed an agreement to sell ethane to a European chemical manufacturer’s cracker plant operations.
According to a press release, Consol inked the deal with Ineos Europe AG, part of the Ineos Group, to export ethane via Sunoco Logistics’ Mariner East infrastructure and the Marcus Hook Delaware River port for use in Ineos’ European cracker complexes.
The company said the agreement builds on plans to transport high-value propane and ethane by pipeline from Western Pennsylvania to Marcus Hook, where the materials will be processed and shipped by sea to domestic and export markets.
Southpointe-based Consol noted that Thursday’s announcement is the second ethane transaction that it has recently announced, following the one it completed with Royal Dutch Shell to supply ethane to its planned cracker facility in Beaver County.
“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 Energy President Nick DeIuliis. “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.”
Consol noted that recent industry investment in midstream infrastructure is providing access to new opportunities by connecting the areas producing “wet” gas in Western Pennsylvania to international markets linked to the Port of Philadelphia, as well as other active and planned export facilities.
Ineos Europe AG is a global manufacturer of petrochemicals, specialty chemicals and oil products, with 15 businesses with chemical-related endeavors. Its production network spans 51 manufacturing facilities in 11 countries.