Sunoco Logistics Partners L.P. Announces Successful Open Season For Project Mariner East

abarrelfullabarrelfull wrote on 27 Sep 2012 07:21
Tags: n-america pipeline sunoco usa

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Sunoco Logistics Partners L.P. (NYSE: SXL) announced today a successful open season for Mariner East, a pipeline project to deliver propane and ethane from the liquid-rich Marcellus Shale areas in Western Pennsylvania to Sunoco, Inc.’s facility in Marcus Hook, Pennsylvania, where it will be processed, stored, and distributed to various domestic and waterborne markets. Binding commitments for all of the pipeline capacity offered have been received from shippers enabling the project to move forward. Mariner East, along with the previously announced Mariner West project which will deliver ethane to the Sarnia, Ontario market by mid-2013, will provide Marcellus Shale basin producers with a comprehensive natural gas liquids takeaway solution. Sunoco Logistics is projecting to invest over $600 million for the Mariner projects.

The project is anticipated to have an initial capacity to transport approximately 70,000 barrels per day of natural gas liquids and can be expanded to support higher volumes. Mariner East is expected to be transporting propane by the second half of 2014 and to be fully operational to deliver both propane and ethane in the first half of 2015. This new capacity will enhance the current propane export capabilities at Marcus Hook.

Sunoco Logistics will construct a pipeline from MarkWest Energy Partners L.P.'s Houston, Pennsylvania processing and fractionation complex to an interconnection with an existing Sunoco Logistics pipeline at Delmont, Pennsylvania.

The natural gas liquids will then be transported to Marcus Hook, Pennsylvania where Sunoco Logistics will construct new facilities to process, store, chill, and distribute propane and ethane to local, regional and international markets. Over the course of construction up to 450 people could be employed.

Phase II in Development
Based upon the significant interest it has received from producers, marketers, and industrial consumers for long-term transportation of Marcellus and Utica Shale natural gas liquids to the Marcus Hook facility, Sunoco Logistics is evaluating offering a second Mariner East open season.

Brian P. MacDonald, Chairman and Chief Executive Officer of Sunoco, Inc., and Chairman of Sunoco Logistics, said: “Mariner East is an important project in two ways. It supports the continued development of the Marcellus Shale, one of Pennsylvania’s most important resources, by offering producers an outlet for valuable products. Mariner East also represents a significant step in re-purposing the former Marcus Hook refinery site and creating a world-class facility with a promising future based on natural gas liquids.”

Michael J. Hennigan, Sunoco Logistics’ President and Chief Executive Officer said:
“We’re excited to be moving forward with Mariner East. This is a great project that uses existing assets in new and creative ways. By reversing an existing pipeline and capitalizing on Marcus Hook’s base infrastructure, we believe we can give producers the most attractive and efficient solution for bringing their propane and ethane to market. This project opens opportunities to meet domestic demand, as well as supply propane and ethane to various waterborne markets, including Europe.”

Pennsylvania Governor Tom Corbett said: “I have long held that the Marcellus Shale is an important resource that over time would benefit the entire Commonwealth. By literally linking Western Pennsylvania resources to markets in Eastern Pennsylvania and beyond, this project represents the first step in achieving that vision. It has the added benefits of creating jobs across Pennsylvania and breathing new life into the former Marcus Hook refinery site.”

U.S. Senator Pat Toomey said: “As an ardent supporter of this project, I’m pleased to see Pennsylvania take a leading role in securing our domestic energy future.

Connecting Delaware County to Western Pennsylvania’s Marcellus Shale development will help support good-paying jobs in our Commonwealth. Today’s announcement is an important step in ensuring America’s energy independence and expanding its role as a global energy exporter.”

U.S. Representative Pat Meehan said: “This project is a tremendous opportunity for our region and our workers. This is the first step toward revitalizing an important regional asset and, by connecting the Marcellus Shale in the west to our workers and resources in the east, we are setting the stage for a stronger economic future right here in our back yard.”

Pennsylvania Senator Dominic Pileggi said: “It’s great to see new investments in historic industrial sites. This project shows what’s possible when companies take the long view. It also opens the door to other potential investments at Marcus Hook.”

Tom McGarrigle, Chairman of Delaware County Council, said: “Mariner East is a critical step in beginning to realize the vision outlined in the Delaware County Industrial Development Authority’s study on re-purposing the Marcus Hook industrial site. It’s great to see investments being made, jobs getting created, and the future looking brighter for business in Southeastern Pennsylvania and Delaware County.”

Jay Schiliro, Mayor of the Borough of Marcus Hook, said: “This is great news for the Borough of Marcus Hook. The project takes a portion of the former refinery site, an asset that many people had written off, and brings it back to life with new investment and jobs.”

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