Study touts jobs, economy in Sunoco pipeline project

The $3 billion Mariner East project linking the Marcellus Shale region to the Philadelphia area is expected to generate widespread economic benefits, according to a study released Thursday by the pipeline's builders.

The study, by Econsult Solutions Inc., says the project will generate a one-time economic impact of $4.2 billion to Pennsylvania's economy, support more than 30,000 jobs during the two-year construction period, and create about 300 to 400 permanent jobs.

Econsult said a "majority" of the economic impact would be in Southeastern Pennsylvania, where the project's builder, Sunoco Logistics Partners L.P., is developing the former Marcus Hook refinery in Delaware County to receive, store, and process the liquid fuels that will be delivered through the cross-state pipeline.

"You just don't see companies investing $3 billion on capital projects in Pennsylvania every day," said Stephen P. Mullin, Econsult's president.

The study no doubt will play a significant role in Sunoco's campaign to win support for the project, which has engendered opposition along the pipeline's 350-mile route.

Econsult estimated the project would generate $23 million in personal income tax to Pennsylvania during construction, and $1.8 million in sales tax. Including indirect economic effects, the project has a "secondary potential fiscal impact" of $62 million in tax revenue for the state.

Sunoco has already begun pumping propane through the first part of the Mariner East project, an 8-inch-diameter pipeline that runs from Washington County. All but 50 miles of that 300-mile pipeline involved repurposing an existing pipeline.

The all-new Mariner East 2 pipeline, which would be constructed next to the older pipeline, would originate farther west at intake points in eastern Ohio, West Virginia, and Western Pennsylvania. Both pipelines are designed to move propane, butane, and ethane - liquid fuels contained in natural gas.

Of the $3 billion price tag for both Mariner East projects, Econsult estimated $2.1 billion would be spent in Pennsylvania. Including indirect and induced impacts, the project would generate $4.2 billion. About $1.9 billion of that would be in labor costs.

Econsult estimated 30,140 direct, indirect, and induced jobs would be supported during construction, or about 15,070 jobs each year for two years. Of those, 8,465 would be directly related to construction of the pipeline and the Marcus Hook renovations. About 80 percent of those jobs would be in the construction industry.

The 6,605 indirect and induced jobs would be supported through the construction project's spillover economic impacts in various industries.

After the project begins operations, scheduled for late 2016, Sunoco expects to spend $60 million to $90 million annually in operating expenses.

The project will employ 110 people directly, mostly in the Philadelphia area, or a total of 290 to 440 jobs when secondary economic effects are included.

Environmental activists were unimpressed with Econsult's projections.

"Once again, the fossil-fuel industry is trying to peddle their project by talking about it in a vacuum," said Maya K. van Rossum, head of the Delaware Riverkeeper Network.

She said the region would be wiser to invest in renewable energy than in a shale gas industry that has a finite life.