Mariner East 1 Pipeline Links Marcellus Shale to East Coast with Introduction of Ethane Shipments to Marcus Hook; Mariner East 2 Key to Further Economic Development in Pennsylvania

March 10, 2016

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NEWTOWN SQUARE, Pa.–(BUSINESS WIRE)–Sunoco Logistics Partners L.P. (NYSE: SXL) announced today that Mariner East 1, the first pipeline in the larger Mariner East system, is now transporting both ethane and propane to the Marcus Hook Industrial Complex and is approaching full operations as it completes loading of the first waterborne ethane shipment.

Mariner East 1 is the first phase of the multifaceted Mariner East project. With Mariner East 1 up and running, the Marcus Hook Industrial Complex is now positioned as the East Coast hub for processing and storing propane, ethane and other natural gas liquids from the shale basins for distribution to local, domestic and international markets. The 70,000 barrels per day of ethane and propane capacity for Mariner East 1 is available for both intrastate and interstate service.

Mariner East 1, originating in Washington County, southwest of Pittsburgh, began shipping propane in December 2014, serving local and regional propane shippers as well as the international market. Ethane shipments commenced last month, and the first tanker carrying ethane to Europe departed from Marcus Hook yesterday.

Mariner East 2, an expansion of the Mariner East system with origin points in Ohio, West Virginia and western Pennsylvania, will add additional off-take points for propane shippers in Central and Eastern Pennsylvania. It is expected to be completed in the first half of 2017 and will add an additional capacity of approximately 275,000 barrels per day of natural gas liquids, primarily propane and butane, from both the Marcellus and Utica shales. Mariner East 2 will provide both interstate service and intrastate service within Pennsylvania and has the potential to expand to 450,000 barrels per day.

“Mariner East 1 is an important milestone for the natural gas and manufacturing industry in Pennsylvania. As expanded by Mariner East 2, this service will create access to new and existing markets, provide reliable, cost-effective heating fuel for homes and businesses, and supply the raw materials that will lead to new manufacturing opportunities and growth,” said Michael J. Hennigan, Sunoco Logistics’ president and chief executive officer. “Mariner East 1 is the starting point; Mariner East 2 presents the opportunity to fully realize those benefits.”

Pennsylvania Governor Tom Wolf said: “The opening of the Mariner East pipeline represents a vital first step in redirecting Pennsylvania’s abundant natural gas resources to critical markets here at home. Sunoco Logistics is making a $3 billion investment in Pennsylvania’s energy economy by keeping Marcellus Shale resources for manufacturing right here in Pennsylvania, rather than sending this business, revenue, and jobs to other states. The immediate effect will be the creation of 290 to 440 permanent jobs. The long-term impact from operation of this pipeline is an estimated $100 million to $150 million influx into Pennsylvania’s economy.”

U.S. Senator Robert P. Casey, Jr., said: “The completion of Mariner East 1 will help create jobs in manufacturing, engineering, and operations for many Pennsylvanians,” Senator Casey said. “I will continue to support efforts to strengthen our economy while helping to make Delaware County an important energy hub in the United States.”

U.S. Senator Pat Toomey said: “As an early supporter of this effort, I’m pleased that the Mariner East project has been completed. Connecting Delaware County to Western Pennsylvania’s Marcellus Shale development will help grow our Commonwealth’s economy and support good-paying jobs for many Pennsylvanians. It also is an important step towards America’s energy independence and expanding our role as a global energy exporter.”

U.S. Representative Pat Meehan said: “When Mariner East was announced in 2012, the project gave vision and hope for our regional economy and our energy sector workers. Fulfillment of this vision goes well beyond revitalizing a critical regional asset in Marcus Hook. We are setting the stage for a stronger economic future right here in our back yard – the foundation for a manufacturing renaissance and a growing energy sector here in Delaware County.”

John J. Dougherty, Business Manager of the Philadelphia Building and Construction Trades Council, commented on the impact to the local labor pool by saying: “This kind of development creates real jobs, giving Pennsylvanians the chance to get ahead, instead of falling behind.”

State Senator Tom McGarrigle of Delaware County, said: “I have supported this project from the beginning because I saw the kind of impact it would have on our economy. It was clear from my days on County Council that this project was important not just for Delaware County, but for the entire Commonwealth.”

Mario Civera, Jr., Chairman of Delaware County Council, noted that Mariner East 1 is the first step in realizing the vision outlined in the Delaware County Industrial Development Authority’s study on re-purposing the Marcus Hook industrial site. “The investments and vision Sunoco Logistics is making, the jobs being created, and the potential for impacts in Southeastern Pennsylvania for generations to come cannot be overstated. Delaware County is positioned to be the center of the energy industry for the eastern United States.”

Gene Taylor, Mayor of the Borough of Marcus Hook, said: “Today’s announcement is another step in the ongoing rebirth of Marcus Hook, whose heritage is tied to this facility. Our history and identity has always been an energy town; now our future is, too.”

About Sunoco Logistics

Sunoco Logistics Partners L.P. (NYSE: SXL), headquartered in Newtown Square, Pennsylvania, is a publicly traded Delaware limited partnership that owns and operates a logistics business, consisting of a geographically diverse portfolio of complementary pipeline, terminalling, and acquisition and marketing assets which are used to facilitate the purchase and sale of crude oil, NGLs and refined products. SXL’s general partner is a consolidated subsidiary of Energy Transfer Partners, L.P. (NYSE: ETP). For more information, visit the Sunoco Logistics Partners L.P. website at www.sunocologistics.com

Category: Oil & Gas