In 2015, Econsult Solutions Inc. (ESI), an economic consulting firm based in Philadelphia, estimated the economic impact of Sunoco Pipeline’s Mariner East project based on the then-under-construction Mariner East 1, the proposed Mariner East 2, and the associated upgrades being made to the Marcus Hook Industrial Complex (MHIC).
Since that time, the potential economic impact has substantially increased due to several changes to the Mariner East project scope and the introduction of an additional phase.
ESI recently updated its economic impact study to reflect those changes.
“The revival of MHIC via the Mariner East pipelines demonstrates the tremendous capacity for energy production in southeastern Pennsylvania,” said ESI President and Principal Stephen P. Mullin.
“Through the ingenuity of Energy Transfer Partners (parent company of Sunoco Pipeline) in transporting the vast supply of natural resources like propane from the Marcellus Shale, Pennsylvania has become a leader in distribution of natural gas liquids, providing a platform for increased business and job opportunities in the region.”
Key findings of the new report include:
- The construction of Mariner East projects is estimated to generate a potential one-time economic impact of nearly $9.1 billion in the Commonwealth.
- Construction will support 57,070 direct, indirect, and induced jobs between 2013 and 2019 with earnings of $2.7 billion impacting multiple industries.
- Construction expenditures will generate estimated one-time tax revenues of $122 million to the Commonwealth over the length of the construction period from the direct, indirect, and induced economic activity.
- By 2020, the Mariner East projects, the fractionation facility, and the associated improvements at MHIC will produce between $140 and $210 million of ongoing annual economic impacts in the Commonwealth, supporting between 360 and 530 direct, indirect, and induced jobs with earnings between $30 and $45 million.
The report also provides insight into the evolving energy landscape in Pennsylvania and the rise of NGLs such as butane, ethane, and propane, the production of which has increased and is forecasted to continue to increase in the U.S.
It projects that the expansion of the Mariner East pipelines and the introduction of the Revolution Project at the MHIC will boost the transportation, storage, and distribution capacity of NGLs in southeastern Pennsylvania, creating a supply for home and commercial heating, as well as manufacturing and industrial feedstocks.