Sunoco Logistics moves ahead on plans for natural gas liquids hub near Phila.
Reuters reports Philadelphia-based Sunoco Logistics is moving ahead on plans to build a natural gas liquids processing and export hub on the site of a former oil refinery in southeastern Pennsylvania.
The newswire obtained records that show the company is seeking a permit from the Pennsylvania Department of Environmental Protection to build a storage facility that would hold more than 2 million barrels of propane, butane and ethane.
Sunoco Logistics did not comment to Reuters, but announced plans earlier this month to build a pipeline that would bring 275,000 barrels a day of natural gas liquids from Ohio, West Virginia and western Pennsylvania to the industrial complex in Marcus Hook.
More from Reuters:
“Sunoco is basically trying to capture the international market, particularly in northeast and northwest Europe,” said Vivek Mathur, a senior analyst at ESAI Energy. “If you’re a Marcellus producer and you have an option to move product to the Gulf Coast or through the Mariner East, it makes economic sense to choose Mariner East.”
Mathur said the facility will chill, store and process enough of the NGLs to meet regional demand and to capture an export market that the Energy Information Administration expects to grow dramatically over the next two decades.
Construction of the storage tanks is expected to start after permitting is complete.