Sunoco Logistics Partners announced it will spend $2.5 billion on a project that will process and deliver natural gas products at the Marcus Hook refinery site.
The Mariner East II project will deliver natural gas liquids from shale areas in western Pennsylvania, West Virginia and eastern Ohio. Production has skyrocketed in the region.
Commitments have been received from shippers, enabling the project to move forward.
Mariner East 2 is expected to provide an initial capacity of 275,000 barrels per day of liquids such as propane, butane and ethane. Combined with Mariner East 1 capacity of 70,000 barrels per day, the Mariner East project will provide 345,000 barrels per day of total production from the shale regions. Mariner East 1 is expected to begin propane service by the end of this year.
Under Mariner East 2, Sunoco Logistics plans to construct a pipeline from processing and fractionation complexes in western Pennsylvania, West Virginia and Eastern Ohio for transport to the Marcus Hook Industrial Complex. Sunoco Logistics plans to construct new facilities at the Marcus Hook Industrial Complex to store, chill, process and distribute propane, butane and ethane for distribution to local, domestic and international markets. Mariner East 2 is expected to be operational by the end of 2016, pending regulatory and permit approvals.
“This vital energy project will provide a comprehensive solution in the region to transport, store and process NGLs from the Marcellus and Utica Shales, and will provide the foundation for the continuing rebirth of the local manufacturing sector,” said Michael J. Hennigan, CEO. “The project also enables the continuing development of the Marcus Hook Industrial Complex, as we convert a former refinery site into a world-class natural gas liquids hub in southeastern Pennsylvania.”
A small portion of the complex is in Delaware although it is expected that no investments will take place in the state. The project will aid skilled construction trades in the region that are needed in such projects
The pipeline project has drawn fire from residents in areas along its route. Mariner East will roughly parallel the Mariner West route.
Sunoco Logistics wil invest about $3 billion in Pennsylvania for the Mariner East projects to provide a mechanism for moving these resources within the commonwealth. As part of this investment, the Mariner East project will also allow for additional propane to be available for consumers
The rapid expansion of natural gas liquids production from the Marcellus and Utica Shale deposits has significantly revitalized local economies across Pennsylvania, creating thousands of jobs and enhancing the country’s energy supply, a release stated. As more natural gas liquids flow through Pennsylvania to Marcus Hook, additional full-time employment opportunities will grow with Sunoco Logistics’ long-term investment at this 800-acre site, according to the release.
Sunoco Logistics is also actively developing the addition of an NGL manufacturing complex, including a propane dehydrogenation (PDH) plant at Marcus Hook for the manufacture of propylene. This furthers the revitalization plan for the Marcus Hook Industrial Complex, the release stated.
