New From PetroChem Wire . . . .
NGLs Week is PetroChem Wire's comprehensive summary of price trends, upstream and downstream costs, operations news and supply/demand forecasts. The report contains everything you'll need to understand what's happening in the NGL markets.
For more information, click here.
For all of our products and services,
American Ethane, Energy & Minerals sign ethane supply deal
HOUSTON, March 19, 2018 (PCW) –- The Energy & Minerals Group, a consortium of private-equity funds, on Thursday announced it had signed a contract to exclusively supply American Ethane’s proposed 10 million mt/yr (484,000 b/d) ethane export terminal along the US Gulf Coast.
Under the agreement, EMG will create a portfolio company to source and supply to American Ethane up to 480,000 b/d from various US midstream companies and producers. EMG will construct new export facilities or partner with other operators to expand existing export facilities and associated midstream supply infrastructure.
The agreement will allow American Ethane to fulfill its 20-year commitments to supply 7.2 million mt/yr (348,480 b/d) of ethane to three crackers in China.
Last November, American Ethane signed a reported $26 billion contract with the Nanshan Group to supply about 2.6 million mt/yr (125,840 b/d) of ethane to their 2 million mt/yr (4.4 billion lbs/yr) cracker, which is currently being built. American Ethane also agreed to supply 2.6 million mt/yr of ethane to a new 2 million mt/yr cracker being built by Ganergy Heavy Industry Group at Jinzhou. The company has not disclosed the third buyer.
American Ethane has also not disclosed the location of the proposed ethane terminal. Previously, it had looked at a location in Shady Grove, Louisiana. In November, American Ethane had said it would begin construction on the terminal in the early part of this year with in-service expected in 2020.
Last week, Energy Transfer and Satellite Petrochemical announced a joint-venture that would build a new ethane export terminal, also along the Texas Gulf Coast, to supply ethane to Satellite’s new crackers in China. The Orbit project has an expected start-up date of 4Q 2020. -- Samantha Hartke