Sunoco Logistics has Best Quarter Ever, Thanks to Marcellus NGLs
In contrast to the bad news we read in quarterly report after quarterly report for exploration and production (E&P) companies, i.e. “drillers”, it’s a starkly different story for some pipeline companies. Take Sunoco Logistics Partners, for example. Sunoco LP’s second quarter 2015 update boasts record earnings for 2Q15. That is, Sunoco LP made and distributed more profit to shareholders in 2Q15 than ever before. What was the “key contributor” to their growth, according to Sunoco LP’s CEO? The company’s three NGL (natural gas liquids) pipelines: Mariner West, Mariner South and Mariner East 1. Both the Mariner West & East pipelines are located in the Marcellus/Utica region. In addition to the rosy financial picture, we learn in the 2Q15 update that Sunoco LP has decided that the Mariner East II project will be two pipelines. We previously told you of Sunoco’s “tentative” plans to build two Mariner 2 pipelines (see Mariner East 2 Giving Birth to Twin Pipelines). Judging from the language in the Q215 update, tentative is sounding a lot more like definite…
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Another anti-pipeline screed from PBS reporter Susan Phillips at the taxpayer-funded StateImpact Pennsylvania website. This is another propaganda piece in a series meant to smear the superb safety record of pipelines, which happen to be the safest form of transportation on earth (see
Something really big is about to happen in the Marcellus/Utica region. Starting August 1, the Rockies Express Pipeline (REX), originally built from Colorado and Wyoming to Monroe County, OH to bring natural gas from west to east, will reverse the flow for a large and important section of the pipeline. On August 1, the section of REX from Monroe County, OH to Mexico, MO will reverse the flow and carry 1.8 billion cubic feet per day (Bcf/d) of Utica and Marcellus Shale gas to the Midwest, including to the greater Chicago area. This flow reversal has the power to a) increase prices northeast drillers receive for their natural gas, and b) lower the cost of natural gas for consumers (and industrial companies, and electric generating plants, etc.) in places like Chicago. It is a win/win scenario. It is so important, and will have such a profound affect on natgas prices in the Midwest, that our friends at NGI’s Daily Gas Price Index have created a “REX Tracker”–a free daily chart updating the price of natural gas along the REX’s Zone 3 section…