Sunoco consultant predicts Marcellus Shale will result in $4.2 billion for state economy

MARCUS HOOK >> A consultant hired by Sunoco Logistics Inc. to evaluate the economic impact business related to the extraction of gas from the Marcellus Shale says the company’s investment could result in a $4.2 billion infusion into Pennsylvania’s economy.

It also would create 300 to 400 permanent jobs across the state and support more than 30,000 jobs during construction of the terminal facility in Marcus Hook and the Mariner East pipeline.

Sunoco Logistics hired Philadelphia-based Econsult Solutions Inc. to study the fiscal impact of the Mariner East projects, which are part of the company’s plans to invest about $3 billion to move natural gas liquids from western Pennsylvania, West Virginia and eastern Ohio to the Marcus Hook Industrial Complex.

Sunoco ceased manufacturing petroleum products at the Delaware County facility in December 2011 and executives now intend to use the site to store, process and distribute propane, ethane and butane from the Marcellus Shale.

“Our numbers indicate that the Mariner East project will significantly impact the state’s economy, from the jobs it will create and support, both temporary and permanent, to the tax revenues generated for the Commonwealth,” Stephen P. Mullin, President and Principal of Econsult Solutions Inc. said. “You just don’t see companies investing $3 billion on capital projects in Pennsylvania every day.”

The study stated the total statewide economic impact of Mariner East is expected to be between $100 and $150 million annually, supporting the 300 to 400 full-time jobs, with estimated earnings of $22 million to $33 million.

In addition, the operations and the ancillary impacts are anticipated to generate between $800,000 and $1.2 million in annual tax revenue for Pennsylvania.

Starting in 2017, Sunoco Logistics expects to spend between $60 and $90 million a year to operate the pipeline projects.

Since Sunoco stopped refining petroleum at Marcus Hook, they have been retrofitting the site to handle Marcellus Shale materials — that includes construction of a 500,000-barrel propane tank and 300,000-barrel ethane tank by Chicago, Bridge & Iron. Delivery of propane to the facility began late last year.

The second phase, called Mariner East 2, includes the construction of a 16-inch, 50-mile segment of pipeline that will connect to existing lines in western Pennsylvania, West Virginia and eastern Ohio to Marcus Hook and additional chilling and storage facilities, allowing for another 275,000 barrels of liquids to be transported to the site daily. At its maximum capacity, 345,000 barrels of propane, ethane and butane will be moved to Marcus Hook each day.

Source: DelcoTimes