Tuesday, November 21, 2017
(November 21, 2017) — Energy Transfer Partners (Philadelphia) may bring in a joint-venture partner for its Mariner East II NGL pipeline project, which has now been officially delayed until next year due to construction and regulatory hurdles, executives said in early November 2017, and as reported by S&P Global Platts.
The comments, during a conference call to discuss the company’s third-quarter financial results, highlight the challenges Energy Transfer and other companies have faced finishing major infrastructure projects, designed to boost takeaway capacity from production areas in the Northeast in order to alleviate downstream constraints and serve increasing demand in other regions of the U.S. and for exports.
Mariner East II, in particular, is expected to be an important conduit for growing supplies of NGLs from the Marcellus and Utica shale plays, notes S&P Global Platts, adding 275,000 bbld of capacity to move propane and butane from plants in western Pennsylvania, Ohio, and West Virginia to the Marcus Hook terminal in eastern Pennsylvania for export. Pennsylvania regulators suspended construction of a valve station on a portion of the line due to the release of drilling mud and sediment into streams, presenting a setback for the project.
“We will do everything we can to being it online sometime in the second quarter,” said Marshall McCrea, Energy Transfer COO. The most recent timeline for Mariner East II to commence operations was during the fourth quarter of this year. Pushing it to the second quarter of next year means it could be the end of June 2018 before it starts up. The pipeline’s original permit application projected startup for the end of 2016.
(SOURCE: The Weekly Propane Newsletter, November 20, 2017)
The comments, during a conference call to discuss the company’s third-quarter financial results, highlight the challenges Energy Transfer and other companies have faced finishing major infrastructure projects, designed to boost takeaway capacity from production areas in the Northeast in order to alleviate downstream constraints and serve increasing demand in other regions of the U.S. and for exports.
Mariner East II, in particular, is expected to be an important conduit for growing supplies of NGLs from the Marcellus and Utica shale plays, notes S&P Global Platts, adding 275,000 bbld of capacity to move propane and butane from plants in western Pennsylvania, Ohio, and West Virginia to the Marcus Hook terminal in eastern Pennsylvania for export. Pennsylvania regulators suspended construction of a valve station on a portion of the line due to the release of drilling mud and sediment into streams, presenting a setback for the project.
“We will do everything we can to being it online sometime in the second quarter,” said Marshall McCrea, Energy Transfer COO. The most recent timeline for Mariner East II to commence operations was during the fourth quarter of this year. Pushing it to the second quarter of next year means it could be the end of June 2018 before it starts up. The pipeline’s original permit application projected startup for the end of 2016.
(SOURCE: The Weekly Propane Newsletter, November 20, 2017)
