First US Overseas Ethane Exports Ready To Set Sail -- RBN Energy -- March 3, 2016

Active rigs:

	3/3/2016	03/03/2015	03/03/2014	03/03/2013	03/03/2012
Active Rigs	34	116	189	184	207

RBN Energy: First US Overseas Ethane Exports Ready to Set Sail.

Just a few years ago, the possibility of overseas ethane exports was almost incomprehensible. Lack of infrastructure, high handling costs, no suitable ships and minimal market demand made ethane exports seem extremely unlikely.  But then the shale gas boom transformed the ethane market.  Now U.S. ethane production greatly exceeds demand and each day hundreds of thousands of barrels of ethane are being rejected into the natural gas stream.  Consequently a few pioneers are hammering through the challenges associated with overseas ethane exports, including the construction of specialized tankage, loading facilities, ships and unloading facilities.  And international chemical companies are spending hundreds of millions of dollars to modify olefin crackers to use the cheap feedstock.  Now the first of those pioneers has made it to the new ethane frontier. In today's blog we examine the impact of imminent ethane exports from the Energy Transfer/Sunoco Terminal at Marcus Hook, PA.

The infrastructure needed to move Marcellus/Utica ethane to offshore markets is in place.  Mariner East 1 pipeline is moving a mixed ethane/propane stream from West Virginia, Ohio and Western Pennsylvania producers to the Marcus Hook Terminal, about 20 miles west of Philadelphia, PA on the Delaware River.  There it is processed in a deethanizer to separate ethane from propane and then the ethane is stored in a 300,000-barrel cryogenic (super cold) ethane storage tank before loading on ships.  Those ships are ready and waiting for their first ethane voyages.  Chemical company Ineos contracted with ship owner Evergas for 8 Dragon Class ships tailored to meet the specific needs of this project. They are some of the most flexible and advanced multi-gas carriers yet to be built at 27,500 cbm.   

The vessels will provide Ineos with a flexible solution for their ethane supplies with the option of transporting LNG, LPG as well as petrochemical gases including ethylene.  Four of these vessels, JS Ineos Insight, JS Ineos Intrepid, JS Ineos Ingenuity, and JS Ineos Inspiration are already on the water moving propane and butane. The other four tankers are scheduled for delivery through mid-2017. 

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Devito: Newest Nominee For The 2016 Geico Rock Award

From The Huffington Post:

Danny DeVito doesn't mess around. Speaking on the controversy surrounding the Oscars' lack of diversity while at the Sundance Film Festival, the actor said, "It’s unfortunate that the entire country is a racist country." DeVito added, "We are living in a country that discriminates and has certain racial tendencies which -- racist tendencies -- so sometimes it’s manifested in things like this and it’s illuminated, but just generally speaking we’re a racist -- we’re a bunch of racists." 

I guess he has not been invited to the White House where we have an African-American president. President Obama was elected to a second full term, pretty much by a political landslide.