Sunoco Logistics acquiring rights to build two 350 mile pipelines to Marcus Hook Industrial Complex

05-Jun-15
Sunoco Logistics confirmed that it is acquiring the rights to build two 350 mile pipelines through Ohio and West Virginia to the Marcus Hook Industrial Complex as part of its Mariner East 2 project, which would bring natural gas liquids such as propane, butane and ethane for storage and distribution to domestic and international markets, as per Bloomberg. Sunoco Logistics has been moving about 70,000 bpd of propane from the Marcellus Shale in western Pennsylvania to Marcus Hook. Most of the 350 mile line travels along an 8 inch line, although a new 12-inch line was constructed to connect a 50-mile stretch between Houston, Pa. and Delmont, Pa. Current plans for Mariner East 2 anticipate that a single line running from Ohio through West Virginia to Delaware County would carry 275,000 bpd. Sunoco Logistics has estimated that the construction of a 300 mile line for this 350 mile project would cost about US$2.5 bln. The cost of constructing a twin line are not yet available. However, Shields explained that if two lines are constructed, one would be 16 inches in diameter and the other would be 20 inches, allowing for an additional capacity between 225,000 barrels to 400,000 barrels per day. The total capacity of both the Mariner East 1 and 2 projects would be 745,000 bpd, according to Shields. Construction on Mariner East 2 is planned for 2016 with operations beginning later that year.
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