September 3, 2015 [OPIS] - Sunoco has launched open season on its Mariner East 2 project with the award of a $300 million refrigerated-storage construction contract at Marcus Hook, Pa., to engineering firm Chicago Bridge & Iron Co. (CB&I).
The scope of work includes the construction of four large low-temperature tanks that will be used for the storage of refrigerated ethane, butane and propane for distribution to the local and international markets.
The Mariner East project involves building a pipeline to deliver propane and ethane fractionated from the liquid-rich Marcellus Shale areas to the Marcus Hook facility for processing, storage and distribution to various domestic and waterborne markets.
The Mariner East 2 project will increase the pipeline capacity from 70,000 b/d outlined in Mariner East 1 to a total of 345,000 b/d.
CB&I provided the $270 million refrigerated ethane and propane storage tanks at Marcus Hook as part of the Mariner East 1, where refrigerated propane deliveries to Europe and other destinations commenced in fourth-quarter 2014, and the first ethane cargo delivery imminent.
Sunoco additionally operates some 2 million bbl of NGL storage capacity in five underground caverns, from which sources estimate around 1 million is dedicated to propane. Butane and small volumes of propylene are also stored.
The startup for Mariner East 2 is expected at the end of 2016, subject to regulatory and permit approvals.
