It was tough deciding on a headline for this post about Sunoco Logistics Partners third quarter 2016 update. In the end we opted to highlight the news that Mariner East 2–a $2.5 billion, 350-mile natural gas liquids (NGL) pipeline that will run from eastern Ohio through the state of Pennsylvania to the Marcus Hook refinery near Philadelphia, carting ethane, butane and propane to the facility from both the Utica and Marcellus region–will be delayed nine months from the original plan due to permit delays. Which is frustrating and disappointing. However, other important news was shared during yesterday’s update. On the earnings call Sunoco LP’s top brass said even though the prices Marcellus and Utica drillers get for their NGLs (natural gas liquids) is lower in the northeast than if they can cart it to the Gulf Coast, when you factor in transportation costs to get product to the Gulf, drillers end up making MORE money by selling their NGLs in the northeast via Sunoco’s Marcus Hook facility–$0.10 to $0.20 per barrel more. At least, that’s the claim made by Sunoco LP’s CEO Michael Hennigan…
It was tough deciding on a headline for this post about Sunoco Logistics Partners third quarter 2016 update. In the end we opted to highlight the news that Mariner East 2–a $2.5 billion, 350-mile natural gas liquids (NGL) pipeline that will run from eastern Ohio through the state of Pennsylvania to the Marcus Hook refinery near Philadelphia, carting ethane, butane and propane to the facility from both the Utica and Marcellus region–will be delayed nine months from the original plan due to permit delays. Which is frustrating and disappointing. However, other important news was shared during yesterday’s update. On the earnings call Sunoco LP’s top brass said even though the prices Marcellus and Utica drillers get for their NGLs (natural gas liquids) is lower in the northeast than if they can cart it to the Gulf Coast, when you factor in transportation costs to get product to the Gulf, drillers end up making MORE money by selling their NGLs in the northeast via Sunoco’s Marcus Hook facility–$0.10 to $0.20 per barrel more. At least, that’s the claim made by Sunoco LP’s CEO Michael Hennigan…