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Range signs LNG supply agreements

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LNG Industry,

Range Resources Corp. has signed transportation and marketing agreements to support its future natural gas production growth. 

The company has signed an agreement to act as a foundation shipper on the ET Rover pipeline, a natural gas pipeline project of ET Rover Pipeline LLC, a subsidiary of Energy Transfer Partners. The project will provide Range the flexibility to move Pennsylvania natural gas to Dawn, Ontario and south to the Gulf Coast. Range has agreed to transport up to 400 000 million Btu/d for 20 years starting in October 2017. The natural gas will be supplied directly from a regional processing plant.

LNG supply agreements

Range has also signed its first two LNG supply agreements subject to commencement of the projects. The company has entered into an agreement with an affiliate of Cheniere Energy Inc. to supply gas to the Sabine Pass LNG terminal on the Gulf Coast. Range is expected to supply gas to the LNG terminal for five years starting in 2017. 

In a separate agreement, Range will also supply natural gas to another LNG terminal for a term of ten years. Range is also in active discussions with several major international companies to supply natural gas to other LNG facilities. The company has existing firm capacity agreements to supply gas to these LNG customers.

Range has also executed two additional fixed term ethane sales agreements that are subject to successful project completion. 

Jeff Ventura, Range's President and CEO, said: “Range's marketing team continues to expand our marketing capabilities for natural gas and ethane. The Rover pipeline provides Range flexibility in selling natural gas to high demand markets in Canada and the Gulf Coast, while the LNG and ethane supply agreements further diversify and strengthen our customer base with industry leading companies. Importantly, these various contracts support our plan to grow production by 20% to 25% for many years giving us base contracts in place with leading companies in key areas that allow for possible future expansion.”

Adapted from press release by

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