The economic impact study by Econsult Solutions Inc. shows the Mariner East projects by Sunoco Logistics can add up to $4.2 billion to Pennsylvania’s economy, including more than 30,000 direct, indirect and induced jobs through the construction phase.
The Marcus Hook Industrial Complex (MHIC), a former oil refinery, is being repurposed by Sunoco Logistics into a storage, processing and distribution terminal for natural gas liquids (NGLs) to meet the residential and manufacturing needs for such products.
Late last year, Sunoco Logistics began transporting propane to MHIC from Houston, Pa. in Washington County. This was due to the Mariner East 1 project, which reversed the flow of an existing pipeline from MHIC and Delmont, Pa. and added 50 miles of new pipeline between Delmont and Houston.
This eight-inch pipeline can transport 70,000 barrels of propane and ethane a day to the region, helping to lower costs for many local producers and manufacturers, as well as increase the propane supply for residential heating. The Mariner East 2 project will build a second pipeline basically parallel to the Mariner East 1 that will run the highly demanded NGLs from eastern Ohio and West Virginia to MHIC. This project is expected to be completed in late 2016, and will transport 275,000 barrels of NGLs a day to MHIC. To help hold these large quantities, the project will include the construction of 2 propane tanks with a 1.5 million barrel capacity, a 600,000 barrel butane tank and an ethane tank with a 300,000 barrel capacity.
The potential economic impact from construction of both the Mariner East 1 and 2 projects is estimated to benefit the state by $4.2 billion, with 30,140 direct, indirect and induced jobs. Of the $4.2 billion, $1.9 billion would be for earnings. While 46 percent of the jobs are expected to be in construction, the remainder of the jobs include architectural services, engineering, wholesale trade, food services, private hospitals and all other industries.
The report estimates a potential economic impact from the project as $97-146 million per year. After construction, the project could possibly support 290-440 full-time equivalent positions, paying $22-33 million per year in salaries. Annual total tax revenues are projected to be $0.8 to $1.2 million once the project construction is completed.
Additional economic impacts the Mariner East project could possibly have for the Commonwealth would be a regional propane supply, product availability to attract manufacturers to the area, and exportation of NGLs to Europe for use by petrochemical and manufacturing companies.
The full economic impact study may be found on the Econsult Solutions Web site.