Philadelphia has long been positioned to become a central energy hub for the northeast. Sunoco Logistics’ Mariner East project will soon fill the need of lacking pipeline infrastructure, spurring the potential growth.
Gas & Oil Magazine reports that Sunoco Logistics recently made a public statement confirming the construction of the pipeline spanning from southwest Pennsylvania to the Marcus Hook Industrial Complex located in Philadelphia. The Mariner East project will consist of 300 miles of pipeline that utilizes other, existing pipeline systems. The system will transmit natural gas liquids (NGLs) such as butane, ethane, and propane from various regions in the Marcellus Shale.
In 2012 Sunoco Logistics purchased the Marcus Hook facility, formerly a refinery, after it shut down its operations the year prior. The company is now planning to repurpose the facility into an industrial complex which will be fed NGLs by the Mariner East system. The repurposing of the facility and the supply of inexpensive shale hydrocarbons will make the region enticing for a variety of manufacturing companies, reports Joseph Massro.
The $2.5 billion Mariner East project is projected to transport about 345,000 barrels of NGLs per day to the Marcus Hook Industrial Complex once completed. That volume is more than double the amounts which flowed into the region prior to the refinery’s closing. After completion, it is expected that Pennsylvania will be in direct competition with the capabilities of the Gulf Coast region.
Once the initial project is completed, Sunoco also plans to develop an 800-acre NGL manufacturing facility in the Marcus Hook complex. The complex would include capabilities such as propane dehydrogenation, which would be used to manufacture propylene, a type of plastic used in everyday items. The project is another step toward making Philadelphia a regional energy hub and is expected to further strengthen the American economy.
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