The shale gas boom in Pennsylvania could breathe new life into the Sunoco Marcus Hook refinery near the Delaware-Pennsylvania state line.
Seven potential uses, including a gas-to-liquids facility and a natural gas export facility, were mentioned in a new study as options for the 781-acre complex that includes a small area in Delaware. Cost of the study was $100,000.
The 127-page report details seven key energy and chemical-related reuse options, with the reporting suggesting that the site could support multiple uses.
The Sunoco Marcus Hook Industrial Complex Economic Opportunity Reuse Study was prepared for the Delaware County, Pa. Industrial Development Authority at the request of the Delaware County Council.
The 781-acre industrial complex is owned by Sunoco, which idled the Marcus Hook refinery in December, 2011. In April, Energy Transfer Partners (ETP), a Texas-based natural gas company, entered into a merger agreement with Sunoco in a deal worth $5.3 billion.
The study was prepared by IHS, a Colorado-based company that has global experts in the field of energy, economics, sustainability and supply-chain management.
“We identified several possible reuse options for the Marcus Hook facility, and what is interesting is that most of these opportunities are possible as a result of the recent phenomenal growth of the U.S. shale oil and gas market,” said Joseph Waldo, director of state and local government consulting for IHS Global, who presented the study results.
“These options could potentially give an economic second life to the complex,” he said.
The seven potential uses fall into two categories: potential energy-product based reuse and potential chemical-product reuse.
The study indicates that jobs would increase substantially if the facility could operate two options at the same time.
The seven reuse options are: propane dehydrogenation, natural gas liquids (NGL) processing facility, refined petroleum products storage, natural gas power generation, ethane cracking and derivatives, liquefied natural gas export terminal and gas-to-liquids productivity and storage.
“All seven reuse options show promise,” Waldo said. “In addition to any direct employment potential linked to reuse options, a repurposed industrial complex would also generate indirect job opportunities as a result of the capital investment necessary to develop the options.”
He also said that a multi-purpose approach is not only can be done; it would widen the job creation potential.
County Council and the staff of the Delaware County Commerce Center, headed by Patrick Killian, say they are in discussions with Marcus Hook officials, federal and state leaders, labor union representatives and Sunoco officials.
The county did see some good news this week with the completion of the sale of the former Phillips 66 refinery in Trainer to a subsidiary of Delta Airlines. Sunoco’s remaining refinery in Philadelphia is also said to be the subject of negotiations by a potential buyer.
Earlier this year, there had been fears that refinery shutdowns could lead to gasoline shortages in the region. However, remaining refineries in the region, notably the Delaware City and Paulsboro, N.J. refineries have filled the gap caused by the closing of other refineries, such as Marcus Hook.
For more information about the IHS study on the Marcus Hook refinery reuse opportunities, contact the Delaware County Commerce Center at 610-566-2225.
