Sunoco Logistics plans to invest $2.5bn for Mariner East 2 project in US

Sunoco Logistics Partners is planning to invest about $2.5bn for Sunoco Pipeline’s Mariner East 2 project in the US.

The project is the second phase of the company’s plan to provide critical pipeline transportation from the Marcellus and Utica shales.

It will expand the Mariner East service to provide natural gas liquids (NGLs) from the shale areas in Western Pennsylvania, West Virginia and Eastern Ohio to Sunoco Logistics’ Marcus Hook industrial complex on the Delaware River in Pennsylvania.

Mariner East 2 is estimated to initially provide 275,000 barrels per day of NGLs such as propane, butane and ethane.

The Mariner East 2 project includes the construction of a pipeline from processing and fractionation complexes in Western Pennsylvania, West Virginia and Eastern Ohio for transport to the Marcus Hook Industrial Complex.

Plans also include the construction of new facilities at the Marcus Hook Industrial Complex to store, chill, process and distribute propane, butane and ethane for distribution to local, domestic and international markets.

Mariner East 2 is expected to start operations by the end of 2016, subject to regulatory and permit approvals.

Mariner East 1, which has a capacity of 70,000 barrels per day, is anticipated to start propane service by the end of 2014.

The entire Mariner East project will provide 345,000 barrels per day of total NGL takeaway capacity from the shale regions.

Sunoco Logistics Partners president and chief executive officer Michael Hennigan said: "This vital energy project will provide a comprehensive solution in the region to transport, store and process NGLs from the Marcellus and Utica Shales, and will provide the foundation for the continuing rebirth of the local manufacturing sector.

"The project also enables the continuing development of the Marcus Hook Industrial Complex, as we convert a former refinery site into a world-class natural gas liquids hub in southeastern Pennsylvania."

Sunoco Logistics will invest around $3bn in Pennsylvania for the Mariner East projects to provide a mechanism for moving the resources within the Commonwealth.