The Energy & Minerals Group and American Ethane Announce Execution of Exclusive Arrangement

HOUSTON–(BUSINESS WIRE)–On February 22, 2018, The Energy & Minerals Group (“EMG”) signed an
exclusive supply and co-development agreement with American Ethane Co.
to provide the remaining capital investment into American Ethane’s
development of a 10 million ton per year ethane export terminal project
on the U.S. Gulf Coast. Under the agreement, EMG will create a portfolio
company to source and supply to American Ethane up to 480,000 barrels
per day from various U.S. midstream companies and producers. The
agreement contemplates that EMG will construct new export facilities or
partner with other operators to expand existing export facilities and
associated midstream supply infrastructure. The anticipated supply and
financial investment from EMG will support three conditionally binding
20-year agreements that American Ethane has executed to supply 7.2
million tons per year of ethane to three ethane-to-ethylene cracker
projects in China, the first of which was signed by American Ethane and
Nanshan Group on November 9, 2017, in the presence of President Donald
Trump and President Xi Jinping. American Ethane anticipates entering
into an additional ethane supply agreement in the future.

The Energy & Minerals Group

EMG is the management company for a series of specialized private equity
funds. The firm was founded by John Raymond (majority owner and CEO) and
John Calvert in 2006. EMG focuses on investing across various facets of
the global natural resource industry including the upstream and
midstream segments of the energy complex. EMG has approximately $15.8
billion of regulatory assets under management and approximately $10.5
billion in commitments have been allocated across the energy sector
since inception.

American Ethane Co.

American Ethane Company, a Texas company, has been in development of the
largest ethane export terminal on the US Gulf Coast with annual output
of 10,0 million metric tonnes per annum of Liquefied Ethane Gas (LEG). A
Full FEED in 2015 by two alternative bidders – AMEC FW (GE Technology)
and S&P (Black & Veach technology). Since 2015, American Ethane has been
in development of the marketed ethane in the Asian markets for power
generation in conjunction with GE, and has signed conditionally binding
contracts for the export of 7.2 million tons of ethane per year to three
cracker projects in China.

Contacts

The Energy & Minerals Group
Jeff Rawls
[email protected]