By KATHLEEN E. CAREY
kcarey@delcotimes.com

Sunoco Logistics Partners LP announced they reaped a successful open season for the Mariner East project — a new future for the former Marcus Hook refinery — bringing with it a potential of 450 construction jobs.

The 178,000-barrel-per-day Delaware County refinery was idled in December after Sunoco Inc. officials announced their intent to end refining due to plummeting financial returns that placed the company in jeopardy of bankruptcy.

Wednesday, company officials said the site will process, store and distribute propane and ethane from the Marcellus Shale in western Pennsylvania through its Mariner East pipeline project as shippers have entered into binding commitments for these materials.

Officials said it is unknown at this time how many permanent jobs this will create. When it was a refinery, there were 590 employees, including Sunoco workers and contractors.

“Mariner East is an important project in two ways,” said Brian MacDonald, chairman and chief executive officer of Sunoco Inc. and chairman of Sunoco Logistics. “It supports the continued development of the Marcellus Shale, one of Pennsylvania’s most important resources, by offering producers an outlet for valuable products.”

In addition, he said, “Mariner East also represents a significant step in repurposing the former Marcus Hook refinery site and creating a world-class facility with a promising future based on natural gas liquids.”

Sunoco Logistics plans to construct a pipeline from MarkWest Energy Partners LP’s Houston processing and fractionation complex to an existing Sunoco line in Delmont, Pa., to move approximately 70,000 barrels per day of natural gas liquids in Marcus Hook.

The company plans to build facilities at the Delaware County site to process, store, chill and distribute the propane and ethane to local, regional and international markets.

The Mariner East pipeline is expected to be moving propane by the second half of 2014 and to be delivering both propane and ethane by the first six months of 2015.

Between this project and the Mariner West project, which will transport ethane to Sarnia, Ontario, by the middle of next year, Sunoco is anticipating investing more than $600 million to these endeavors. Continued...

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Gov. Tom Corbett highlighted the Marcellus Shale’s role in the project.

“I have long held that the Marcellus Shale is an important resource that over time would benefit the entire commonwealth,” he said. “By literally linking Western Pennsylvania resources to markets in Eastern Pennsylvania and beyond, this project represents the first step in achieving that vision. It has the added benefits of creating jobs across Pennsylvania and breathing new life into the former Marcus Hook refinery site.”

Other elected officials lauded the development.

“This project is a tremendous opportunity for our region and our workers,” said U.S. Rep. Patrick Meehan, R-7, of Upper Darby. “This is the first step toward realizing an important regional asset and, by connecting the Marcellus Shale in the west to our workers and resources in the east, we are setting the stage for a stronger economic future right here in our backyard.”

State Senate Majority Leader Dominic Pileggi, R-9, of Chester, said, “It’s great to see new investments in historic industrial sites. This project shows what’s possible when companies take the long view. It also opens the door to other potential investments at Marcus Hook.”

Tom McGarrigle, chairman of Delaware County Council, also praised the project, as council directed the Delaware County Industrial Development Authority to contract a reuse study of the 780-acre site. From that study, the Marcus Hook site seemed to lend itself well to the opportunities made possible by the Marcellus Shale.

“Mariner East is a critical step in beginning to realize the vision outlined in the Delaware County Industrial Development Authority’s study on repurposing the Marcus Hook industrial site,” McGarrigle said. “It’s great to see investments being made, jobs getting created and the future looking brighter for business in Southeastern Pennsylvania and Delaware County.”

Based on the interest, Sunoco Logistics is considering offering a second Mariner East open season.

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