Sunoco Logistics

Accidents | Energy Services | Industrywide Issues | Ohio | Pipelines | Statewide OH | Sunoco Logistics

Sunoco Logistics Oil Pipeline Leaks 20K Gal in OH Nature Preserve
March 27, 2014March 27, 2014

Last Tuesday Sunoco Logistics discovered a 5-inch crack leaking crude oil from their Mid-Valley Pipeline–and the oil was leaking into the Oak Glen Nature Preserve just west of Cincinnati, OH. Ouch. Initial reports were that 10,000 gallons of oil had leaked before the pipeline between Hebron, KY and Lima, OH was shut off. That estimate has been doubled–it’s now thought more than 20,000 gallons of oil leaked. Double ouch.

What does this have to do with Marcellus/Utica shale drilling? Not much. It’s possible some of the oil comes from Ohio–more likely from other locations (we don’t know). Sunoco Logistics is the company that has built (and is building) the Mariner West and Mariner East ethane/NGL pipelines–but it’s a stretch to compare those gas pipelines with the Mid-Valley oil pipeline. The connection between the oil spill and northeast shale drilling is this: MDN editor Jim Willis first learned about the leak at the Oil & Gas Awards’ “Conference for Excellence” last week in Pittsburgh. Jim was sitting next to an official from McCutcheon Enterprises–one of the companies called in to clean up the mess–who told Jim about the spill and his company’s rapid response to work on getting it cleaned up…
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Energy Services | Industrywide Issues | Litigation | MarkWest Energy | Pennsylvania | Pipelines | Processing Plants | Regulation | Sunoco Logistics | Washington County

PA Judge Hears Mariner East NGL Pipeline Eminent Domain Case
January 22, 2014January 22, 2014

Sunoco Logistics–and for that matter, MarkWest–have a lot riding on a single court case in Washington County, PA. It might be a bit melodramatic to say the future of the Mariner East NGL (natural gas liquids) pipeline hangs in the balance, but it certainly is not inaccurate to say the case could cause an extended delay–if it goes the “wrong” way (for Sunoco). What’s the case about?

Sunoco’s Mariner East “refined products” pipeline spans the entire state of Pennsylvania. In order to connect to that pipeline to ship propane and ethane to the Marcus Hook refinery near Philadelphia, Sunoco first has to build a 50-mile feeder pipeline from the MarkWest processing plant in Houston (Chartiers Township) to Delmont (see the Sunoco map below). The problem is, a group of landowners in Washington County won’t play ball and lease their land to Sunoco to bury the pipeline. Sunoco got tired of negotiating with the recalcitrant landowners, and changed tactics to declare it (Sunoco) has eminent domain power under PA state authority. They sue the 25 landowners for force them to allow the pipeline. The landowners sued back arguing the 50-mile pipeline should come under federal, not state, authority. One of the 25 cases is being used as a proxy for the others and that case was just argued yesterday before a PA judge. A decision, according to the judge, will be “prompt”…
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Energy Services | Ethane | Industrywide Issues | NOVA Chemicals | Pipelines | Processing Plants | Sunoco Logistics

Why Wait for a Cracker to be Built? Canadian Plant Cracking Now
January 20, 2014January 20, 2014

Although both WV and PA are in a race to build the northeast’s first ethane cracker plant, such a plant will not be operational for at least another 4-5 years–if all goes well. The problem is, what do you do with all of the ethane being produced now in the Marcellus and Utica Shale? Ethane is a valuable commodity that can be sold for a lot more than regular methane (or “dry gas”)–unless there’s no way to get it to a cracker. Then ethane becomes a waste product and actually costs money. The three ways to deal with ethane in the northeast right now are: (1) blend it with methane and other hydrocarbons, (2) flare it, i.e. burn it off, or (3) ship it out of the northeast via pipeline to a cracker plant. Option #3 is, of course, the preferred option for drillers–and an option that is now, as of a few months ago, a reality.

Although ethane has been flowing through the Mariner West pipeline (owned and operated by Sunoco Logistics) to the Corunna cracker plant in Sarnia, Ontario, Canada for the past few months, it has only been fully operational for a short time. Last Thursday, officials at the Corunna plant held a ceremony to commemorate full operation of receiving and processing Marcellus and Utica Shale ethane at the plant…
Read More “Why Wait for a Cracker to be Built? Canadian Plant Cracking Now”
Energy Services | Industrywide Issues | Ohio | Pipelines | Portage County | Sunoco Logistics

Sunoco Logistics Answers NGL Pipeline Concerns in Portage, OH
January 20, 2014January 20, 2014

Sunoco Logistics personnel were treated last week to a variety of silly concerns about an NGL pipeline they’re proposing through Portage County, OH–concerns like people keeling over dead because of undetected leaks in the buried pipeline and mass contamination of water aquifers. The anti-drillers are so good at distributing lies and distortions it’s no wonder average folks are concerned. You’d think a pipeline was the equivalent of an environmental holocaust.

Even though pipelines are the safest form of transportation in existence, people turned out last week and packed the local county commissioner’s office to express their unfounded concerns. Here’s how it went:
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

Handful Protest Mariner East Pipeline at Sunoco HQ in Philly
December 11, 2013December 11, 2013

Something like two dozen paid, professional protesters showed up at Sunoco Logistics headquarters yesterday in downtown Philadelphia to preen before (a few) media cameras and make outrageously false statements about the Mariner East pipeline. These are people with nothing better to do with their time than to desperately try to grab 15 minutes of fame.

Here’s an example of the bilge that flowed from the groups financing the protest:
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Energy Services | Industrywide Issues | NGLs | Pipelines | Sunoco Logistics

Into the Light: Open Season Announced Mariner East 2 NGL Pipeline
December 5, 2013

A few weeks ago MDN observed that Sunoco Logistics’ is planning a second Mariner East NGL pipeline to run alongside the pipeline they’re working to complete now that runs from western PA all the way to the Marcus Hook refinery near Philadelphia (see Sunoco Logistics Planning Second Mariner East Pipeline for NGLs). We wouldn’t say Sunoco’s plans for a second pipeline have been shrouded in secrecy or conspiratorial, but we would say they haven’t exactly been forthcoming about their plans either–until now.

Yesterday Sunoco announced a binding open season to allow producers to sign up for capacity on the Mariner East 2 pipeline (official name). The open season began yesterday but we find no mention of when it will end, so perhaps it’s open-ended for now. (Usually open seasons last for a month or so.) The plan is to have this new pipeline operational in early 2016. Here’s the press release from Sunoco Logistics announcing the open season for Mariner East 2 (with map):
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Energy Services | Industrywide Issues | NGLs | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

Sunoco Logistics Planning Second Mariner East Pipeline for NGLs
November 22, 2013November 22, 2013

More than a year ago MDN brought you the news that Sunoco Logistics’ Mariner East pipeline–an existing pipeline being upgraded to convey propane and ethane from western Pennsylvania all the way to the Marcus Hook refinery near Philadelphia–was completely spoken for (see Mariner East Pipeline to Philly Refinery 100% Committed). Range Resources announced at the time that they would be the main user of the pipeline (see Range Announces They’re Main Shipper for Mariner East Pipeline). Upgrades to the Mariner East are under way now and will be online beginning in 2014.

In re-reading those stories from last year, we should have noticed something we did not. Sunoco said they were considering a second “open season” for Mariner East. If the pipeline is already 100% committed, how can they take on even more customers? Answer: Build a second Mariner East pipeline. Thanks to an excellent bit of reporting in the Harrisburg Patriot-News, we now understand what that statement meant last year. In a story published yesterday, the Patriot-News says Sunoco is working on a plan to build a second Mariner East pipeline across PA. Although there are currently few details, the outlines of where the pipeline may go are taking shape thanks to notifications received by PA landowners in the Susquehanna Valley area…

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Energy Services | Sunoco Logistics

Sunoco Provides Brief Update on Mariner East/West Pipelines
November 7, 2013November 7, 2013

Sunoco Logistics is in the midst of spending over $1 billion on two pipelines to carry ethane (and propane) from the Marcellus/Utica region to markets where it can be processed and sold. One of those pipelines is the Mariner West pipeline, currently in testing and due to go online this month, which carries ethane all the way to Sarnia, Canada. The other is Mariner East which will carry first ethane and then propane to the Marcus Hook refinery in Philadelphia. Mariner East will go online in stages beginning in 2014.

Both pipelines are extremely important to the Marcellus/Utica region. We have a brief update on both projects from Mike Hennigan, President and CEO of Sunoco Logistics, as delivered yesterday on an analyst phone call reviewing the company’s third quarter numbers…
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Boardwalk Pipeline Partners | Energy Services | Enterprise Products Partners | Industrywide Issues | Kinder Morgan | MarkWest Energy | Pipelines | Sunoco Logistics | Williams

“Midstream Knife Fight” – Who Will Have 1st Operational NGL Pipeline to Gulf?
November 1, 2013November 1, 2013

In the race to be the first pipeline to flow ethane from the Marcellus/Utica region to a cracker plant elsewhere, it looks like Sunoco Logistics may have won. Their Mariner West pipeline to Sarnia, Canada has been in testing since July and due to turn throw the valve wide open in November, according to Range Resources (see Range Resources 3Q13: Nearing 1 Bcf/d, Rev Up 29%, Costs Down 12%). However, not to be outdone, the Appalachia to Texas Express (ATEX) ethane pipeline being built by Enterprise Products Partners now says they will go fully online in December, months ahead of schedule (see ATEX Ethane Pipeline to Begin Pumping Dec 2013, Ahead of Schedule). Both pipelines going online a month apart? We’d call it a photo finish with Mariner West winning by a nose.

Now everyone’s attention is turning to mixed NGL (natural gas liquids) pipelines. There’s another horse race heating up. Williams and Boardwalk Pipeline Partners are building the Bluegrass pipeline to the Gulf Coast (see Bluegrass Pipeline Launches Open Season, on Track for 2015 Launch). And then there is Kinder Morgan and MarkWest Utica who have joined forces to build a mixed NGL pipeline to the Gulf Coast too (see 2 New OH Projects: Cryo Processing Plant & NGL Pipeline to Gulf). Which one will be the first to go operational? Several analysts weigh in with their colorful opinions…
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Arrowhead Utica Pipelines | Columbiana County | Energy Companies | Energy Services | Hilcorp Energy | Industrywide Issues | NGLs | Ohio | Sunoco Logistics | Trucking

Progress for Arrowhead NGL Transload Facility in Wellsville, OH
October 23, 2013October 23, 2013

Progress for the Arrowhead Utica Pipeline transloading facility being built on property leased by Arrowhead Utica (a subsidiary of Utica driller Hilcorp) from the Columbiana County Port Authority in Wellsville, OH. The transloading facility is a $20-$40 million project that will bring natural gas liquids (NGLs) to the facility to be loaded on rail, truck and barge.

On Monday, the Port Authority approved easements and rights of way to Arrowhead and Sunoco Pipeline to install and maintain pipelines near the Wellsville facility…
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Energy Services | Industrywide Issues | Pennsylvania | Philadelphia Energy Solutions | Pipelines | Statewide PA | Sunoco Logistics

A Novel Approach to Deliver Cheap Marcellus Shale Gas to Philly
September 30, 2013

Problem: How can Philadelphia benefit from cheap, abundant Marcellus Shale natural gas being produced in such large quantities in Pennsylvania that the state can’t use it all and is now a net exporter? Yes, as Drexel president John Fry said at Shale Insight last week, Philly can provide education and research to assist the shale revolution (see Shale Insight 2013: Final Wrap-Up, The Big Surprise). But aside from education and research, how can Philly realize the tangible benefits of low-cost shale gas? Answer: Install a big, fat pipeline into Philly to deliver cheap Marcellus Shale gas to residents and businesses that can use it.

New Problem: Where do you run a new pipeline in a densely populated city like Philly? New Answer: Under the Delaware River (?!?!)…
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Anti-Drilling/Fossil Fuel | Energy Services | Ethane | Industrywide Issues | Medina County | NGLs | Ohio | Pipelines | Sunoco Logistics

Handful of Medina, OH Anti-Drillers Oppose Ethane Pipeline
September 30, 2013September 30, 2013

A handful of residents in Medina, OH are opposing an update to a pumping station that sits on the Mariner West pipeline. Sunoco Logistics owns and operates the pipeline which they are converting to handle ethane, a natural gas liquid. The plan is to pipe ethane from the Marcellus and Utica Shale region all the way to Sarnia (Ontario), Canada to an ethane cracker plant located there.

Local anti-drillers in Medina don’t like fracking (even though it’s perfectly safe) so they’ve decided to focus on stopping the pipeline as a deterrent to more fracking…
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Energy Companies | Energy Services | Ethane | Industrywide Issues | Pipelines | Range Resources Corp | Sunoco Logistics

Sunoco Says Mariner West Opening Soon, but Range Already Using??
September 4, 2013September 4, 2013

Although not publicly announced by Sunoco Logistics Partners, MDN told you back at the end of July that we spotted an admission from Range Resources that the first batch of ethane had been piped from the Marcellus Shale in western PA to Sarnia, Ontario (Canada) via the Mariner West pipeline (see Big News: Marcellus Ethane Now Exporting to Canada Cracker Plant). Was Range lying? We don’t think so–but today we noticed a small article published by Bloomberg (known to fudge the truth) that says the Mariner West pipeline will begin service in late September or early October. Huh?…
Read More “Sunoco Says Mariner West Opening Soon, but Range Already Using??”
Energy Companies | Energy Services | Ethane | Industrywide Issues | MarkWest Energy | NGLs | Pipelines | Processing Plants | Range Resources Corp | Sunoco Logistics

Big News: Marcellus Ethane Now Exporting to Canada Cracker Plant
July 25, 2013July 25, 2013

Every now and again you come across a big, fat gold nugget of news in a press release. That happened for MDN today when we read yesterday’s press release from Range Resources, innocently announcing their second quarter 2013 results (see today’s story about Range). The gold nugget? Range reports that on July 21st their first deliveries of ethane via the Mariner West pipeline were made to Sarnia, Ontario, Canada. This is the first time ethane has made it to a processing (cracker) plant.

The little nugget of gold from Range, the only Marcellus driller (so far) to sell ethane…
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Energy Services | Industrywide Issues | MarkWest Energy | Pipelines | Processing Plants | Research | Sunoco Logistics | Williams

3 Marcellus Midstream Companies Top Customer Satisfaction Survey
May 15, 2013May 15, 2013

EnergyPoint Research released an overview of their biannual Midstream Services Study this morning. Three companies with large Marcellus operations top the list Read More “3 Marcellus Midstream Companies Top Customer Satisfaction Survey”
Allegheny County | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Sunoco Logistics

PA Town First to Try Regulating Pipelines – Will Ordinance Stand?
March 14, 2013March 14, 2013

On Monday, supervisors for Forward Township (Allegheny County), PA unanimously approved what is believed to be the first (and perhaps an illegal) zoning ordinance targeting and extensively regulating both gathering and transmission pipelines in the township. Sunoco is building a low-pressure liquid-gas transmission pipeline from a processing plant in Houston, Washington County that passes through about 275 properties in Forward to a distribution point in Delmont, Westmoreland County.

The town solicitor has said existing pipelines are not affected by the new ordinance. Problem is, interstate transmission lines are regulated by the federal government, and smaller gathering pipelines are regulated by the state. Pipelines are not regulated by municipalities. A lawyer at Babst Calland makes this observation on the ShaleEnergyLawBlog.com:

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