Jeffrey Ventura on infrastructure development
From Range Resources Interview with Jeff Ventura at The Oil & Gas Conference20 · · Oil and Gas 360 - EnerCom
“Spectre Uniontown to gas city started up about two weeks ago with phase one and literally the final phase is in about around September 1st. So in 2 weeks away that'll take about 200 million per day of our gas or about 25% of our gas production from the local M2 market to the Midwest. And the significance right now is that's about a 75 cent to a dollar uplift in pricing. So that's really important particularly in today's world. So it takes a big portion of our gas to better pricing. We've hedged and locked in a big part of that. And then uh Mariner East is very important or Mariner East one in particular that we're on and this is a project that's been in the making for a long time. We have the lion share of that project. We have 20,000 barrels per day of propane which is about 80% of the capacity and 20,000 barrels of ethane. Um so we had 40,000 barrels per day. We're the only producer that has firm transportation on the project and we have the lion share of it. What it'll do is allow us to export uh ethane to Europe. Uh so we'll be the one of the we'll be the first C company to really export ethane out of the United States. Uh our partners are that's going to pick it up. FOB, Marcus Hook or Philadelphia. Uh that's important. We're currently exporting ethane to Canada on Mariner West. The other thing uh Mariner East does for us is on propane. It'll fix the transportation cost uh to a much more favorable level and it allow us the ability to either sell propane into the northeast markets when uh the time's right or to export propane as well. So u again when you add that when you look at that project and you combine it with our other uh projects in in terms of natural gas liquids once Mariner East one is up and running it's about a $90 million per year uplift for us and that should be in the fourth quarter.”
On , Jeffrey Ventura, Former Chairman, President & Chief Executive Officer at RANGE RESOURCES CORP, spoke about infrastructure development during Range Resources Interview with Jeff Ventura at The Oil & Gas Conference20 on Oil and Gas 360 - EnerCom.
About Jeffrey Ventura
At the 2015 Oil & Gas Conference, Jeffrey Ventura, then Chairman, President, and CEO of Range Resources, discussed the company's position in the Marcellus Shale play. Ventura stated that Range Resources had the discovery well and first commercial well in the Marcellus, completed in October 2004, which he said turned the company from a small firm into part of a premier gas field. He described Range as the largest and lowest-cost producer in the Marcellus, according to Wood Mackenzie, and emphasized that size, scale, and low cost are critical in a commodity business. Ventura also highlighted infrastructure projects, including the Spectra Uniontown to Gas City pipeline, which he said transports 200 million cubic feet per day of Range's gas to the Midwest with a pricing uplift, and the Mariner East One project, providing firm transport for 40,000 barrels per day of ethane and propane. He projected that natural gas prices would rise to $3.80 to $4.20 within a year or two due to increasing demand from LNG exports, power generation, and industrial growth, and noted that Range had over 50% of its 2016 gas hedged at a $3.42 floor.