Sunoco Logistics to Invest $2.5 billion in NGL Pipeline
November 07, 2014Sunoco Logistics Partners L.P. announced a successful open season for Sunoco Pipeline L.P.’s Mariner East 2 project, the second phase of the company’s plan to provide pipeline transportation from the Marcellus and Utica shales. Mariner East 2 is intended to expand the Mariner East service to deliver natural gas liquids (NGLs) from western Pennsylvania, West Virginia and eastern Ohio to Sunoco Logistics’ Marcus Hook Industrial Complex on the Delaware River in Pennsylvania, where it will be stored and distributed.
The company said sufficient binding commitments were received from shippers to enable the project to move forward. Sunoco Logistics plans to invest $2.5 billion for Mariner East 2.
Mariner East 2 is anticipated to provide an initial capacity of 275,000 barrels per day of NGLs such as propane, butane and ethane. Combined with Mariner East 1 capacity of 70,000 barrels per day, the Mariner East project is expected to provide 345,000 barrels per day of total NGL takeaway capacity from the shale regions. Mariner East 1 is expected to begin propane service by the end of 2014.
For Mariner East 2, Sunoco Logistics plans to construct a pipeline from processing and fractionation complexes in western Pennsylvania, West Virginia and eastern Ohio for transport to the Marcus Hook complex. It also plans to construct new facilities at Marcus Hook to store, chill, process and propane, butane and ethane.
Mariner East 2 is expected to be operational by the end of 2016, subject to regulatory and permit approvals.