Consol and Range to supply shale gas to Ineos cracker
The US-based junior companies Consol Energy Inc. (Consol) and Range Resources Corporation (RRC or Range Resources) signed long term agreements with the Swiss registered petrochemical company Ineos Group AG (Ineos) to import shale gas from the USA to supply its ethylene cracker at Grangemouth complex in Scotland, UK.
In the same way Range Resources is a typical junior company which contributed to the extraordinary development of the shale gas and coal bed methane development in the US with interests in the Appalachian and Southwestern basins.
In 2013, Range Resources increased its proved reserves by 26% and replaced 612% of its production on the same period.
Not only the gas prices in Europe are higher than in US, but the decline of the maturing fields in the UK North Sea is reducing by 50% the available capacity of natural gas to feed Ineos crackers at the scale of Grangemouth complex.
Ineos to build Grangemouth Ethane Terminal fast track
In securing competitive feedstock from Consol and Range Resources, landed in UK at about 50% below current North Sea prices, Ineos is now able to reconsider the future of this critical petrochemical complex to make it running at the optimal capacity of 700,000 tonnes per year (t/y) of ethylene.
The construction of this Grangemouth LNG Import Terminal will be implemented on fast track.
It should have a storage capacity of 33,000 tonnes of ethane and downloading capacity of 2,000 tonnes per day (t/d).