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Mariner West Initial Capacity to Be 20,000 B/D, Sunoco Says

Sunoco Logistics Partners LP (SXL)’s Mariner West natural gas liquids pipeline will have an initial capacity of about 20,000 barrels a day, the company said in an e-mailed statement today.

Jeff Shields, a Sunoco spokesman in Philadelphia, is correcting a Sept. 3 statement indicating the line would start at 10,000 barrels a day, Shields said. Capacity will increase to about 50,000 barrels a day by the end of the first quarter of 2014, he said.

The project will transport ethane from the Marcellus shale formation in western Pennsylvania to the Sarnia petrochemical market in southwestern Ontario. Mariner West will begin operations in late September or early October, Shields said Sept. 3.

Gas liquids prices have declined since 2012 amid ample supplies from shale formations, prompting processors to leave ethane mixed in the gas stream rather than separate it, according to the Energy Department’s Energy Information Administration.

Natural gas output may rise 1 percent from a year ago to a record 69.89 billion cubic feet a day this year, the EIA said in its Short-Term Energy Outlook on Aug. 6.

To contact the reporter on this story: Christine Buurma in New York at cbuurma1@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net

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