Mariner East 1 Pipeline Links Marcellus Shale to East Coast with Introduction of Ethane Shipments to Marcus Hook; Mariner East 2 Key to Further Economic Development in Pennsylvania
Sunoco Logistics Partners L.P. (NYSE:
SXL) announced today that Mariner East 1, the first pipeline in the
larger Mariner East system, is now transporting both ethane and propane
to the Marcus Hook Industrial Complex and is approaching full operations
as it completes loading of the first waterborne ethane shipment.
Mariner East 1 is the first phase of the multifaceted Mariner East
project. With Mariner East 1 up and running, the Marcus Hook Industrial
Complex is now positioned as the East Coast hub for processing and
storing propane, ethane and other natural gas liquids from the shale
basins for distribution to local, domestic and international markets.
The 70,000 barrels per day of ethane and propane capacity for Mariner
East 1 is available for both intrastate and interstate service.
Mariner East 1, originating in Washington County, southwest of
Pittsburgh, began shipping propane in December 2014, serving local and
regional propane shippers as well as the international market. Ethane
shipments commenced last month, and the first tanker carrying ethane to
Europe departed from Marcus Hook yesterday.
Mariner East 2, an expansion of the Mariner East system with origin
points in Ohio, West Virginia and western Pennsylvania, will add
additional off-take points for propane shippers in Central and Eastern
Pennsylvania. It is expected to be completed in the first half of 2017
and will add an additional capacity of approximately 275,000 barrels per
day of natural gas liquids, primarily propane and butane, from both the
Marcellus and Utica shales. Mariner East 2 will provide both interstate
service and intrastate service within Pennsylvania and has the potential
to expand to 450,000 barrels per day.
“Mariner East 1 is an important milestone for the natural gas and
manufacturing industry in Pennsylvania. As expanded by Mariner East 2,
this service will create access to new and existing markets, provide
reliable, cost-effective heating fuel for homes and businesses, and
supply the raw materials that will lead to new manufacturing
opportunities and growth,” said Michael J. Hennigan, Sunoco Logistics’
president and chief executive officer. “Mariner East 1 is the starting
point; Mariner East 2 presents the opportunity to fully realize those
benefits.”
Pennsylvania Governor Tom Wolf said: “The opening of the Mariner
East pipeline represents a vital first step in redirecting
Pennsylvania’s abundant natural gas resources to critical markets here
at home. Sunoco Logistics is making a $3 billion investment in
Pennsylvania’s energy economy by keeping Marcellus Shale resources for
manufacturing right here in Pennsylvania, rather than sending this
business, revenue, and jobs to other states. The immediate effect will
be the creation of 290 to 440 permanent jobs. The long-term impact from
operation of this pipeline is an estimated $100 million to $150 million
influx into Pennsylvania’s economy.”
U.S. Senator Robert P. Casey, Jr., said: “The completion of
Mariner East 1 will help create jobs in manufacturing, engineering, and
operations for many Pennsylvanians,” Senator Casey said. “I will
continue to support efforts to strengthen our economy while helping to
make Delaware County an important energy hub in the United States.”
U.S. Senator Pat Toomey said: “As an early supporter of this
effort, I’m pleased that the Mariner East project has been completed.
Connecting Delaware County to Western Pennsylvania’s Marcellus Shale
development will help grow our Commonwealth’s economy and support
good-paying jobs for many Pennsylvanians. It also is an important step
towards America’s energy independence and expanding our role as a global
energy exporter.”
U.S. Representative Pat Meehan said: “When Mariner East was
announced in 2012, the project gave vision and hope for our regional
economy and our energy sector workers. Fulfillment of this vision goes
well beyond revitalizing a critical regional asset in Marcus Hook. We
are setting the stage for a stronger economic future right here in our
back yard – the foundation for a manufacturing renaissance and a growing
energy sector here in Delaware County.”
John J. Dougherty, Business Manager of the Philadelphia Building
and Construction Trades Council, commented on the impact to the local
labor pool by saying: “This kind of development creates real jobs,
giving Pennsylvanians the chance to get ahead, instead of falling
behind.”
State Senator Tom McGarrigle of Delaware County, said: “I have
supported this project from the beginning because I saw the kind of
impact it would have on our economy. It was clear from my days on County
Council that this project was important not just for Delaware County,
but for the entire Commonwealth.”
Mario Civera, Jr., Chairman of Delaware County Council, noted
that Mariner East 1 is the first step in realizing the vision outlined
in the Delaware County Industrial Development Authority’s study on
re-purposing the Marcus Hook industrial site. “The investments and
vision Sunoco Logistics is making, the jobs being created, and the
potential for impacts in Southeastern Pennsylvania for generations to
come cannot be overstated. Delaware County is positioned to be the
center of the energy industry for the eastern United States.”
Gene Taylor, Mayor of the Borough of Marcus Hook, said: “Today’s
announcement is another step in the ongoing rebirth of Marcus Hook,
whose heritage is tied to this facility. Our history and identity has
always been an energy town; now our future is, too.”
About Sunoco Logistics
Sunoco Logistics Partners L.P. (NYSE: SXL), headquartered in Newtown
Square, Pennsylvania, is a publicly traded Delaware limited partnership
that owns and operates a logistics business, consisting of a
geographically diverse portfolio of complementary pipeline,
terminalling, and acquisition and marketing assets which are used to
facilitate the purchase and sale of crude oil, NGLs and refined
products. SXL's general partner is a consolidated subsidiary of Energy
Transfer Partners, L.P. (NYSE: ETP). For more information, visit the
Sunoco Logistics Partners L.P. website at www.sunocologistics.com
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