Sunoco eyes more Mariner East expansion

OREANDA-NEWS. June 09, 2015. Sunoco Logistics may build a second Mariner East II NGL pipeline in conjunction with the previously announced pipeline to further expand the midstream operator's shipments of Marcellus- and Utica-produced NGLs to its export terminal in Marcus Hook, Pennsylvania.

In the company's first quarter earnings call, chief executive Michael Hennigan noted potential for scaling total Mariner East II capacity from 275,000 b/d to 450,000 b/d.

The proposed pipeline, which would be built side-by-side with the current planned line, would add as much as 225,000 b/d of capacity, which would bring potential Mariner East II capacity to 675,000 b/d, Sunoco Logistics told Argus. Installing both lines at the same time would save the company money and minimize disruption for property owners.

Sunoco Logistics brought online the 70,000 b/d Mariner East I propane/ethane pipeline late last year. The line is now exclusively shipping propane, and throughput was ramped up to 20,000 b/d in the beginning of the second quarter. The company is expected to begin ethane operations by the end of the third quarter.

The three combined pipelines would total 745,000 b/d in NGL capacity.

Sunoco Logistics plans to hold an open season for the pipeline to weigh customer interest, but has not yet selected a date.