Ethane Epiphany | Russell T. Rudy Energy LLC
Ethane has always been the orphan hydrocarbon for the oil and gas industry. It is too energy intensive for transport in natural gas pipelines to end users. However, it is too volatile to be safely transported with heavier natural gas liquids (NGLs) to markets either. Ironically it is a valuable feedstock for petrochemical plants which are designed to process it. In established oil and gas production areas solutions have evolved which involve isolating ethane from the other hydrocarbons and getting it to an established market, usually via a dedicated pipeline.
However, “Rigzone” reports that as a result of the shale revolution, the vast reserves of gas in the Marcellus and Utica shales of Pennsylvania, Ohio and West Virginia threatened to turn a problem into a crisis. Range Resources had to find a way to extract ethane and other NGL’s from methane (the natural gas used as a domestic and industrial fuel) in order to transport the latter through traditional pipelines.
Range Resources was able to partner with midstream operator, MarkWest Energy Partners, who were able to extract the NGLs and isolate the ethane. Unfortunately, there were no local customers for the ethane, and large volumes of the product needed to find a market. Fortunately, there was a ready market for the ethane, but it was in Europe. Previously ethane had only been transported via water on small vessels for short distances.
Evergas, the Danish Shipping Company, designed the world’s first “Dragon-class” vessels which will transport large volumes of ethane from a terminal in the Philadelphia area to an ethane cracker in Rafnes, Norway owned by Ineos. These Dragon-class tankers will constitute a virtual seaborne pipeline across the Atlantic as part of an arrangement that benefits all parties.
Innovation and creativity made the shale revolution possible, and it, in turn, is giving rise to further innovation.
To read the article in its entirety, please go to http://www.rigzone.com/news/article.asp?hpf=1&a_id=149849&utm_source=DailyNewsletter&utm_medium=email&utm_term=2017-04-26&utm_content=read&utm_campaign=feature_4 .
Russell T. Rudy Energy, LLC buys oil, gas and mineral interests nationwide. Please call (800-880-0940), or write (info@rudyenergy.com ) to let us know if you agree, disagree or would just like to comment on this, or any of our posts.
