Sunoco Logistics Partners LP (NYSE: SXL) reports a successful open season for Sunoco Pipeline LP’s Mariner East 2 project, the second phase of the company’s broader plan to provide critical pipeline transportation from the Marcellus and Utica shale plays.
Mariner East 2 will expand the Mariner East service to deliver natural gas liquids (NGLs) from the liquid-rich shale areas in 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 to various local, domestic, and international markets. Sufficient binding commitments have been received from shippers, enabling the project to move forward.
Sunoco Logistics plans to invest $2.5 billion for Mariner East 2, which 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 will 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 Industrial Complex. Sunoco Logistics plans to construct 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. Sunoco Logistics plans to offer intrastate and interstate movements to meet the demands of various markets. Mariner East 2 is expected to be operational by the end of 2016, subject to regulatory and permit approvals.