Sunoco Looks to Build PA Pipeline

Friday, November 7, 2014 @ 12:11 PM gHale


Sunoco Logistics wants to build a second pipeline meant to carry natural gas liquids from southwestern Pennsylvania, eastern Ohio and West Virginia to an industrial complex southwest of Philadelphia.

The $2.5 billion pipeline they are calling Mariner East 2 will have a proposed capacity of 275,000 barrels per day and is the second phase of the company’s plans to ship natural gas liquids across Pennsylvania.

RELATED STORIES
Chemical Leak Contained at NJ Refinery
Sunoco Pipeline Bursts in LA
Pipeline Spill Brings Exxon $1.4M Fine
NM Pipeline Blast Kills One

The pipeline will flow into Marcus Hook, a century-old refinery site in eastern Pennsylvania.

Sunoco is in the process of re-purposing Mariner East 1, a crude pipeline that spans 300 miles between Delmont in Westmoreland County and Marcus Hook. That project has a capacity of 70,000 b/d and should begin shipping propane by the end of the year. The system will add ethane by mid-2015, executives said Thursday.

Mariner East 2 will start in Ohio and run through the panhandle of West Virginia and southwestern Pennsylvania until it meets up with its predecessor in Houston, Washington County. From there, the lines will run parallel to the east coast.

At Marcus Hook, natural gas liquids can ship to local and regional markets or exported to international customers.

Sunoco expects the second pipeline to be operational by the end of 2016, pending regulatory approvals, and effectively quadruple the volume of natural gas liquids transported to Marcus Hook.

The Marcus Hook refinery, which began processing crude oil in 1902, is an 800-acre industrial area containing a former refinery; five underground caverns for storing natural gas liquids as well as water, rail, truck and pipeline access.

“Our goal and our dream for a while has been to turn this complex into an NGL manufacturing hub on the East Coast, and the Mariner system enables us to start to do that,” said Sunoco Logistics Chief Executive Michael Hennigan. “I think what you are going to see is a lot of job creation and a lot of development in Marcus Hook.” NGLs includes ethane, propane, butane and isobutene.

Denver-based Antero Resources is one of the anchors for the project, committing 51,000 b/d to the system. Sunoco declined to name other companies that have not publicly announced their participation yet.

The company also said Thursday it will develop a propane dehydrogenation plant at Marcus Hook to manufacture propylene, used to make plastics and other products.



Leave a Reply

You must be logged in to post a comment.