MARCUS HOOK >> As Sunoco Logistics eyes its Mariner
East 2 project, company officials are considering adding a second pipe to the
plan that would potentially increase the daily flow of liquefied natural gas 10
fold.
Sunoco Logistics confirmed Thursday that the company 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 part of Mariner East 2, we’ve been acquiring
easements in Ohio and West Virginia,” Jeffrey Shields, Communications Manager
at Sunoco Logistics, said. “We’ll be in Delaware County probably in the next
month or so.”
Having already planned on building one pipeline in this
phase, Shields said, the company believes the addition of a second line now
would be less disruptive to homeowners and property owners along the route, and
it would save business costs.
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Although Sunoco Logistics has not yet embarked on a
formal open season, seeking contracts from potential customers, it is
evaluating its options to build the second line based on demand from the market
for the natural gas liquids.
“We’ve always known that there’s interest,” Shields said.
“We’re trying to provide for near and long-term possibilities. We think that
the short-term possibility is real, and we’re working towards that and we’d
like to put in two pipelines at the same time.”
In related matters, Bloomberg reported that Braskem, the
largest producer of thermoplastic resins in the Americas, is considering
building a facility in either Marcus Hook or in La Porte, Texas, to manufacture
1 billion pounds of resin.
In 2010, the Brazilian manufacturer entered the North
American market with its acquisition of a Marcus Hook facility from Sunoco
Chemicals. When Sunoco Inc. shut down the nearby refinery in 2011, the fate of
the polypropylene producer was uncertain as the company had been using Sunoco’s
proplyene splitter to make their product.
In June 2012, Braskem announced its purchase of the
splitter from Sunoco for an undisclosed sum and began production of about 771
million pounds of polypropylene annually. The facility produces the equivalent
of 12 rail cars per day of resin pellets, which are used to make everything
from diapers to medical gowns to cups and containers.
According to Bloomberg, the influx of propane could
impact Braskem as it can be converted into propylene, one of the ingredients of
polypropylene.
And, if Sunoco Logistics’ plans come to fruition, there
will be an abundant supply of propane — and other gas liquids — coming to
Marcus Hook as early as late 2016.
Sunoco Logistics has been moving about 70,000 barrels of
propane a day 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 barrels per day. Sunoco Logistics has estimated that the construction
of a 300-mile line for this 350-mile project would cost about $2.5 billion.
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 barrels per day, according to Shields.
Construction on Mariner East 2 is planned for 2016 with
operations beginning later that year.
Although no formal contracts or talks have begun, Sunoco
Logistics officials said creating this line will be beneficial.
“We’re working towards securing those additional business
commitments, and we think that’s the best path for all concerned if we can make
it happen,” Shields said.
Source: DELCO
Times
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