Sunoco's Marcus Hook Site Could Be Used for LNG Exports

Sunoco Inc.’s (SUN) Marcus Hook refinery in Pennsylvania, which was shut last year after the company failed to find a buyer for it, could be used as a liquefied natural gas export facility or gas-fired power station, according to a report by IHS Inc. (IHS)

Other possibilities include using the site to process natural gas liquids, store gasoline or make chemical product ingredients, according to the study released today and funded by the Delaware County Industrial Development Authority. The facility could host two of the options simultaneously.

“These options could potentially provide an economic second life to the complex,” Joseph Waldo, director of state and local government consulting for Englewood, Colorado-based IHS, said in a statement. “Most of these opportunities are possible as a result of the recent phenomenal growth of the U.S. shale oil and gas market.”

The Marcus Hook facility was idled in December and Sunoco said Feb. 2 it didn’t get a single proposal to buy it. Sunoco began talks with Carlyle Group LP (CG) in April to sell its Philadelphia refinery and has said it would close the facility in July if it can’t sell it.

Pennsylvania lawmakers in February joined members of the United Steelworkers union at a rally in Washington to oppose the planned closing of three refineries in the state.

To contact the reporter on this story: Benjamin Haas in New York at bhaas7@bloomberg.net

To contact the editor responsible for this story: Susan Warren at susanwarren@bloomberg.net

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