Pennsylvania regulator suspends construction permits for NGL pipeline

HOUSTON (ICIS)–A regulator in Pennsylvania issued an order that suspended the construction permits for the Mariner East 2 pipeline, it said on Wednesday.

Energy Transfer Partners was developing the pipeline, which would ship natural gas liquids (NGLs) from the Marcellus and Utica shales to its shipping terminal in Marcus Hook, Pennsylvania.

From Marcus Hook, Energy Transfer would then ship the NGLs overseas. Already, the original Mariner East Pipeline is sending ethane to Marcus Hook. From there, it is being shipped overseas to INEOS’s gas crackers in Europe.

The suspension by the regulator in Pennsylvania will limit how much ethane that Energy Transfer can export from the east coast.

The Pennsylvania Department of Environmental Protection (DEP) said the construction permits will remain suspended until Energy Transfer satisfies the terms outlined in an order that the regulator issued.

For example, Energy Transfer needs to address all of the effects to private water wells in Silver Spring township in Cumberland county.

Energy Transfer started working on Mariner 2 in 2013, when the company was known as Sunoco Logistics.

At the time, Energy Transfer expected to complete the pipeline by the end of 2016. Energy Transfer had also planned to build an expansion of Mariner 2, which would add another 250,000 bbl/day of NGL capacity.

These two pipelines would join the original Mariner East pipeline.

Energy Transfer did not immediately respond to a request for comment.