Energy Transfer's Mariner East 2 NGLs Pipeline Begins Service

Researched by Industrial Info Resources (Sugar Land, Texas)--Energy Transfer LP (NYSE:ET) (Dallas, Texas) announced on December 29 that its Mariner East 2 natural gas liquids (NGLs) pipeline is in service. The 350-mile pipeline moves NGLs from the Marcellus and Utica shales to Energy Transfer's Marcus Hook industrial complex in Pennsylvania, where the NGLs are stored for domestic and waterborne markets, according to the company.

Industrial Info has tracked more than $2 billion in U.S. NGL pipeline project activity that was completed in 2018. Burgeoning domestic crude oil and natural gas production is leading to growing production of natural gas liquids (NGLs), triggering billions of dollars of planned investments in gas-processing and pipeline projects. For related information, see December 31, 2018, article - Growing U.S. Gas and NGL Production Spur Infrastructure Buildout.

Click on the image at right to see a graph showing 2018 U.S. NGL pipeline project completions by market region.

Mariner East 2 is part of Energy Transfer's Mariner East system of pipelines designed to provide NGL takeaway capacity for the Marcellus and Utica Shale production areas in Eastern Ohio, West Virginia and Western Pennsylvania. The Mariner East 2X pipeline, which parallels Mariner East 2, is expected to be in service in late 2019. The pipelines, with a total investment value of more than $1 billion, will transport 272,750 barrels per day (BBL/d) of ethane, butane and propane from processing plants in Ohio across West Virginia and Pennsylvania to Marcus Hook. For more information, see Industrial Info's project report.

Mariner East 2 was placed into service after overcoming several regulatory hurdles. For more information, see August 10, 2018, article - Energy Transfer Partners' Major Projects Approach Completion After Headwinds.

Other substantial NGL pipeline completions in 2018 include:

• Kinder Morgan Incorporated's (NYSE:KMI) (Houston, Texas) $500 million Utopia NGLs pipeline. The 270-mile ethane pipeline, which runs from Harrison County, Ohio, to Windsor, Ontario, was placed into service in January 2018. The pipeline carries 50,000 BBL/d of ethane from the Utica Shale to Windsor, and is expandable up to 75,000. Kinder Morgan has an offtake contract for the ethane with NOVA Chemicals Corporation (Calgary), which operates three plants in Ontario. For more information, see Industrial Info's project report.
• Formosa Plastics Corporation USA's (Livingston, New Jersey) $125 million ethane supply pipeline from Clemville, Texas, to Mont Belvieu, Texas. The 30,000-BBL/d pipeline supplies ethane to an ethylene unit that is under construction at Formosa's Point Comfort plant. For more information on the pipeline, see Industrial Info's project report.
• DCP Midstream's (NYSE:DCP) (Denver, Colorado) $100 million Red Bluff NGL pipeline loop. The 90-mile pipeline loops the original pipeline between a natural gas processing plant in Goldsmith, Texas, and an interconnect with DCP's Sand Hills pipeline in Texas. For more information, see Industrial Info's project report.

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