NGL Projects Seen Bolstering Jobs, Pennsylvania Economy

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.