Range Resources, producer of natural gas and natural gas liquids in the Appalachian Basin, recently signed an ethane supply agreement with PTTGC America, the American PTT Global Chemical Public Co.
Under the agreement, Range Resources will become the anchor supplier for a proposed ethylene cracker in Appalachia. The company would supply 15,000 barrels daily of ethane to a facility that includes an ethylene cracker with ethane feed capacity of 100,000 barrels daily. The company also would supply multiple facilities for creating ethylene derivative products to supply the Northeast.
The proposed polyethylene complex would be one of the largest recent manufacturing investments for Appalachia.
The agreement is expected to close early next year and is contingent upon PTTGCA reaching a final investment decision.
“We are pleased to help support a world-class project that brings additional jobs to Appalachia while utilizing our low-cost natural gas resources,” Jeff Ventura, Range president and CEO, said. “Range views this project as a win-win-win for Range, PTTGCA, and the many communities in the Northeast that will benefit from the economic boost this facility provides. Importantly, for Range, ethane supplied to PTTGCA will be sourced from existing natural gas production and NGL processing facilities with the benefit of no additional transportation required. Range will also receive a significant revenue uplift compared to selling into the natural gas stream.”