Mariner 2 pipeline to generate $4.2 billion for Pennsylvania economy

Pipeline coming from oil pump
Source: DollarPhotoClub

A new report sponsored by Sunoco Logistics Partners predicts a a $4.2 billion boost from Marcellus Shale-related investments in Pennsylvania connected to the construction of the new $3 billion, 350-mile-long Mariner East 2 Pipeline.

The Mariner 2 Pipeline is a 16-inch pipeline Sunoco Logistics plans to build nearly paralleling its existing 8-inch Mariner East 1 which runs from Washington County.

Project Mariner East is a pipeline project to deliver propane and ethane from the liquid-rich Marcellus Shale areas in Western Pennsylvania to the company’s Marcus Hook facility. Mariner East is scheduled to be fully operational to deliver propane and ethane in Mid-2015.

For Mariner East 2, Sunoco 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, where the company plans to construct new facilities to store, chill, process and distribute propane, butane and ethane for distribution to local, domestic and international markets.

This week, Sunoco Logistics released the results of a study conducted by Philadelphia-based Econsult Solutions Inc., which demonstrated that the project will not only generate a one-time economic impact of $4.2 billion to Pennsylvania’s economy, but it will also support more than 30,000 jobs during the two-year construction period, and create about 300 to 400 permanent jobs.

“You just don’t see companies investing $3 billion on capital projects in Pennsylvania every day,” said Stephen P. Mullin, president and principal at Econsult.

Econsult’s report estimated about half of the pipeline’s engineering will be done by Pennsylvania firms and 25 percent of its steel will come from in-state plants. Construction will generate an estimated $62 million in taxes to the state from workers directly employed by its projects and from related businesses, the report found.

The project includes at least three propane distribution points along the pipeline before it reaches Marcus Hook. The impact study said Mariner East could help stabilize volatile propane prices.

The falling oil and gas prices, which have forced many drillers to scale down production, have also made them look toward new pipelines which can take the glut of the gas at the well-head to new markets and demand sources.

Sources: TribLive, Phily.com

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