STATE COLLEGE, Pa., April 11, 2016 (GLOBE NEWSWIRE) -- INEOS Europe AG and Rex Energy Corporation (Nasdaq:REXX) have announced a new natural gas liquids sale and purchase agreement covering ethane, propane and butane. The natural gas liquids will be transported through the Mariner East infrastructure and exported by sea to INEOS’ European cracker complexes. Transportation of Ethane supplies commenced in April 2016 while propane and butane supplies will start with the completion of Mariner East 2 pipeline in 2017.
“This contract adds to our supply portfolio providing for long-term sourcing of advantageously priced US natural gas liquids for our European crackers. We are excited about our new business relationship with Rex Energy and look forward to future opportunities between our companies,” said David Thompson, CEO INEOS Trading and Shipping.
“We are excited to begin this new relationship with INEOS,” commented Tom Stabley, President and Chief Executive Officer of Rex Energy. “With the new sales agreement, we will now have three different outlets to deliver our natural gas liquids volumes, both domestic and international. The new outlets will enhance the economics of our wells in the Butler Operated Area and our overall resource potential.”
On March 23rd, INEOS confirmed that its vessel, the INEOS Intrepid, had arrived at its petrochemicals plant at Rafnes in Norway, carrying 27.500m3 of US shale gas ethane. This was the very first time that ethane from US shale gas had ever been exported from the USA and the first time it has been imported into Europe. It gives the continent the chance to benefit from the US shale gas economics which did so much to revitalize manufacturing in the United States.
The project has been complex – involving the design and long term charter of all eight Dragon class ships (which collectively create a virtual pipeline across the Atlantic), connection of the new 300 mile Mariner East pipeline from the Marcellus shale in Western Pennsylvania to the Marcus Hook deep water terminal near Philadelphia, and the creation of new export facilities and storage tanks.
INEOS has invested $2 billion bringing US shale gas to Europe.
Jim Ratcliffe, the chairman and founder of INEOS said, “Shale gas economics have revitalized US manufacturing and has the potential to do the same for European manufacturing.”
About INEOS Europe AG
INEOS is the first company to establish seaborne intercontinental ethane transportation, having earlier announced the completion of agreements with Sunoco Logistics for capacity in the Mariner East pipeline and terminal system, with Range Resources for the purchase of ethane, with Evergas for the construction of new customised vessels and with TGE Engineering for the construction of a new tank in its Rafnes cracker. INEOS is currently constructing an ethane terminal in Grangemouth, Scotland.
About Rex Energy Corporation
Headquartered in State College, Pennsylvania, Rex Energy is an independent oil and gas exploration and production company operating in the Appalachian and Illinois Basins within the United States. The company’s strategy is to pursue its higher potential exploration drilling prospects while acquiring oil and natural gas properties complementary to its portfolio.
This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. Forward-looking statements are based on current beliefs and expectations and involve certain assumptions or estimates that involve various risks and uncertainties, such as financial market conditions, changes in commodities prices and the other risks discussed in detail in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 and other subsequent filings with the Securities and Exchange Commission. Readers should not place undue reliance on any such forward-looking statements, which are made only as of the date hereof. Rex Energy has no duty, and assumes no obligation, to update forward-looking statements as a result of new information, future events or changes in the Company's expectations.
For more information contact: Investor Relations (814) 278-7130 InvestorRelations@rexenergycorp.com
Source:Rex Energy Corporation