Energy Transfer LP subsidiary Sunoco Pipeline LP is carrying out optimization activities at its Marcus Hook export terminal, which would temporarily halt operations at the Mariner East 1 NGL pipeline during September.
During the optimization period, Range Resources Corp., which is the main shipper on Mariner East 1, would instead sell ethane volumes in its residue natural gas stream. The Appalachian Basin-focused producer would also use the Mariner East 2 pipeline to ship its propane volumes usually transported via Mariner East 1.
By selling more ethane in its gas stream, Range expects an improvement in NGL and gas differentials and an increase in gas production, offsetting lower reported NGL production. Range also updated its third-quarter production guidance to about 2.22 Bcfe/d to 2.23 Bcfe/d, compared to its original guidance of 2.25 Bcfe/d to 2.26 Bcfe/d, to reflect the increase in ethane rejection.
Range's third-quarter production is unchanged and the downtime's expected impact to cash flow is minimal, according to a Sept. 10 news release. The optimization work would also have no impact on Range's operations, with the company remaining on track to spend at or below its capital budget of $756 million.
The Mariner East 1 line is scheduled to return to service early October, with the optimization expected to result in more efficient transportation to end markets, Range said.
