Thursday, February 19, 2015
Philadelphia-based Econsult Solutions has released an economic impact study that finds the Sunoco Logistics Mariner East projects are expected to add up to $4.2 billion to Pennsylvania’s economy, supporting more than 30,000 jobs during the construction period and about 300 to 400 permanent jobs. The study, commissioned by Sunoco Logistics, is designed to forecast the potential economic and fiscal impacts of its proposed Mariner East projects on the commonwealth’s economy, including the development of a 50-mile pipeline that connects with an existing line, construction of a new 350-mile pipeline, and the repurposing of its Marcus Hook Industrial Complex to store and process NGLs.
Sunoco Logistics plans to invest about $3 billion in Pennsylvania for the Mariner East projects to transport NGLs from western Pennsylvania, West Virginia, and eastern Ohio to its Marcus Hook Industrial Complex—a former oil refinery—for storage, processing, and distribution of NGLs such as propane, ethane, and butane. The study finds that construction of Mariner East will support an estimated 30,000 direct, indirect, and induced jobs throughout the construction period, including direct jobs in the construction industry as well as architectural and engineering jobs, wholesale trade business jobs, and professional, scientific, and technical service jobs. According to the study, the projects will generate an estimated $23 million in personal income tax to the commonwealth throughout the construction period, plus a secondary potential fiscal impact for a total of $62 million in tax revenues for Pennsylvania from direct, indirect, and induced activities of Sunoco Logistics, its vendors, and employees.
In addition to construction benefits, the study projects that NGL transport, processing, and distribution from the Mariner East projects will create a recurring economic impact from ongoing operations. Although the total expenditure for operations at the Marcus Hook Industrial Complex has not been finalized, Sunoco Logistics predicts spending between $60 million and $90 million annually to operate the pipeline projects beginning in 2017. Throughout the entire commonwealth, the total economic impact of the projects’ ongoing service is estimated to be between $100 million and $150 million annually, supporting between 300 and 400 full-time equivalent jobs with estimated earnings of $22 million to $33 million. Ongoing operations and their spillover impacts will generate between $800,000 and $1.2 million in annual tax revenue to Pennsylvania. The majority of employment and expenditure impacts are estimated to be in the southeastern Pennsylvania region, including the city of Philadelphia and Montgomery, Bucks, Delaware, and Chester counties, due to the ongoing operations at the Marcus Hook Industrial Complex.
“Our numbers indicate that the Mariner East projects will significantly impact the state’s economy, from the jobs they will create and support, both temporary and permanent, to the tax revenues generated for the commonwealth,” said Stephen P. Mullin, president and principal of Econsult Solutions. “You just don’t see companies investing $3 billion on capital projects in Pennsylvania every day.” The Mariner East projects will increase the locally available domestic supply of propane, meeting both the residential and commercial need for propane and other NGLs as inputs for regional manufacturing. In addition, new business and job opportunities may also become available in southeastern Pennsylvania due to the stabilized local supply of NGLs.
Sunoco Logistics plans to invest about $3 billion in Pennsylvania for the Mariner East projects to transport NGLs from western Pennsylvania, West Virginia, and eastern Ohio to its Marcus Hook Industrial Complex—a former oil refinery—for storage, processing, and distribution of NGLs such as propane, ethane, and butane. The study finds that construction of Mariner East will support an estimated 30,000 direct, indirect, and induced jobs throughout the construction period, including direct jobs in the construction industry as well as architectural and engineering jobs, wholesale trade business jobs, and professional, scientific, and technical service jobs. According to the study, the projects will generate an estimated $23 million in personal income tax to the commonwealth throughout the construction period, plus a secondary potential fiscal impact for a total of $62 million in tax revenues for Pennsylvania from direct, indirect, and induced activities of Sunoco Logistics, its vendors, and employees.
In addition to construction benefits, the study projects that NGL transport, processing, and distribution from the Mariner East projects will create a recurring economic impact from ongoing operations. Although the total expenditure for operations at the Marcus Hook Industrial Complex has not been finalized, Sunoco Logistics predicts spending between $60 million and $90 million annually to operate the pipeline projects beginning in 2017. Throughout the entire commonwealth, the total economic impact of the projects’ ongoing service is estimated to be between $100 million and $150 million annually, supporting between 300 and 400 full-time equivalent jobs with estimated earnings of $22 million to $33 million. Ongoing operations and their spillover impacts will generate between $800,000 and $1.2 million in annual tax revenue to Pennsylvania. The majority of employment and expenditure impacts are estimated to be in the southeastern Pennsylvania region, including the city of Philadelphia and Montgomery, Bucks, Delaware, and Chester counties, due to the ongoing operations at the Marcus Hook Industrial Complex.
“Our numbers indicate that the Mariner East projects will significantly impact the state’s economy, from the jobs they will create and support, both temporary and permanent, to the tax revenues generated for the commonwealth,” said Stephen P. Mullin, president and principal of Econsult Solutions. “You just don’t see companies investing $3 billion on capital projects in Pennsylvania every day.” The Mariner East projects will increase the locally available domestic supply of propane, meeting both the residential and commercial need for propane and other NGLs as inputs for regional manufacturing. In addition, new business and job opportunities may also become available in southeastern Pennsylvania due to the stabilized local supply of NGLs.
