Mariner east from sxl 4th quarter cc-hope it posted
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Mariner East .,
"...The NGL area, our Mariner West project which will deliver ethane to the Sarnia marketplace is on schedule for mid-2013 startup with a capacity approximately 50,000 barrels per day and the ability to scale higher.
Engineering is underway for our Mariner East project. This project will deliver ethane and propane from the Marcellus to Marcus Hook, Pennsylvania where it will be processed, stored and distributed to the local, regional and international markets.
Total capacity is approximately 70,000 barrels a day with the ability to scale higher. We expect to be able to deliver propane by the second half of 2014, and both ethane and propane in the first half of 2015.
As you are aware propane is already being exported from the terminal today as the Northeast as long and we’ll continue to go longer NGLs as Marcellus and Utica develop further. Marcus Hook link the Mariner East project as repurpose and further develop this key waterborne industrial site.
Based upon the significant interest during our Mariner East open season, we are developing a Phase II. As production in the Marcellus and Utica continues to grow, additional NGL takeaway capacity will be needed by producers.
We believe a Northeast hub of that Marcus Hook to supply local and regional demand, as well as providing access to the export market will be very attractive to producers and industrial customers....Bradley Olsen - Tudor Pickering
Great. And one last question for me. It looks as though with all of the NGL processing and fractionation infrastructures you’ve got coming online throughout 2013 and early 2014, that there’s a real risk that the Northeast becomes long NGLs within the next 12 to 18 months.
And as you guys are well aware, there’s a lot less infrastructure flexibility in the Northeast for NGLs in terms of export capacity and different pipelines to move volumes around than there is on, say, the Gulf Coast. Given that dynamic, have you seen accelerating interest or accelerated demand for an expansion of Mariner East, or are there any things that we can look out as market observers to kind of evaluate whether or not the demand is going to be there for a second phase of Mariner East?
Mike Hennigan - President and CEO
Yeah. It’s a great question, Brad. I mean, we are really actively pursuing Mariner East Phase II at this point. We were very pleased, Mariner East Phase I at 70,000 barrels got oversubscribed, which we were happy that the interest was there but we had a limited to the capacity of the existing 8-inch pipeline that we have there.
And as you mentioned, the area is already long. We are exporting propane today from the Marcus Hook terminal. We are bringing trucks and rail in until the pipe is available to us and we are trying to get the existing pipe available as soon as we can. But clearly, I think everybody realizes that it is the growth in those shale areas continues it’s going to be longer and longer.
And it’s our view that it doesn’t make any sense to bring those barrels down to the Gulf Coast whereas you mentioned there is already going to be continuing growth in NGL activity down into the Gulf. So we are still very bullish to Mariner East. We are working it at this point. We believe the market needs it. We are very bullish to hold Marcellus, Utica growth pattern and I know you can talk in various companies to see what that looks like. But we are already in a situation where propane is exporting butanes right behind it. I think it’s just a great opportunity for us to expand than what we’ve already gotten with Mariner East I....