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The Port of Philadelphia: the East Coast’S Interview with Resurgent Energy Hub Pennsylvania By: Jeff Shields, Communications Manager, Sunoco Logistics Partners L.P

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The Port of Philadelphia: the East Coast’S Interview with Resurgent Energy Hub Pennsylvania By: Jeff Shields, Communications Manager, Sunoco Logistics Partners L.P PRSRT STD U.S. POSTAGE PAID WILMINGTON, DE PERMIT NO. 1635 THE MARITIME EXCHANGE 240 Cherry Street Philadelphia, PA 19106 BEACONSummer 2015 ADDRESS SERVICE REQUESTED Volume 25, No. 2 http://www.maritimedelriv.com w [email protected] Supporting the Delaware River Cold Storage Task Force for 2015. Thank you! The Port of Philadelphia: The East Coast’s Interview with resurgent energy hub Pennsylvania By: Jeff Shields, Communications Manager, Sunoco Logistics Partners L.P. Congressman The Mariner East pipelines will move a total of 345,000 barrels a day of natural gas liquids (such as Robert Brady propane, ethane, and butane) from the Marcellus and Utica Shale areas to Marcus Hook. The former refin- ery, built in 1902, is ideal as an industrial processing and shipping hub due to its industrial capacity, in- cluding its safe and well-established marine facilities, full-service docks with trained on-shore and maritime staff, and an existing industrial base and infrastruc- ture. Currently, there are approximately 150 employ- ees at MHIC, up from less than 50 when the refinery was idled in 2011. MHIC is equipped with dock facilities for trucks, LPG Gaschem Pacific, 505’ 107,000 bbls of propane. One of trains, ships and barges and can receive and deliver the smaller “handsize” vessels coming to Marcus Hook Indus- products to numerous third-party pipelines. The in- trial Complex. Democrat Robert A. “Bob” Brady is the frastructure at MHIC provides access to various mar- U.S. Representative for Pennsylvania’s The Port of Philadelphia’s return to its roots as an kets, including Pennsylvania, New York and northern 1st Congressional district, serving since energy hub has officially begun with the advent of Su- 1998. He is the ranking Democrat on the New Jersey terminals via pipelines, and Baltimore, Committee on House Administration and noco Logistics’ Mariner East pipeline projects, which New England, Europe, and other overseas export has been a staunch supporter of the port offer development of Southeast Pennsylvania’s manu- markets via ship. industry. We asked the Congressman to facturing economy with the natural resources of the share with us a little of the history involved Mariner East 1 is a 300-mile underground pipeline during his years of support for our regional Marcellus and Utica Shales in western Pennsylvania, project to transport 70,000 barrels a day of liquid pro- maritime community. West Virginia and eastern Ohio. pane and ethane from western Pennsylvania. Upon ar- In December of 2014, Sunoco Logistics commis- rival at the Marcus Hook facility, the products will be Q: You’ve been very active in maritime sioned its Mariner East 1 pipeline, transporting pro- processed, stored, and sold to the local, regional, and activity in our region. How did you get interested in that work? pane from the Marcellus Shale to the Marcus Hook international markets. It utilizes approximately 250 Industrial Complex (MHIC), less than two months af- miles of existing 8-inch diameter steel pipeline, plus A: I appreciate the chance to speak with The Beacon. Your readers are the ter announcing a second phase. Mariner East 2 would 51 miles of new 12-inch diameter steel pipe between quadruple the capacity of the initial project. leaders of our maritime community, and Washington County and Westmoreland County. Mari- your publication is a terrific resource for Both projects, which will cost approximately $3 ner East 1, already moving propane, is scheduled to everyone who cares about the state of our billion combined, will have a $4.2 billion impact on be fully operational in the third quarter of this year, river and riverfront. the Pennsylvania economy, according to an analysis transporting both ethane and propane. I was actually working on maritime issues before I was elected to Congress. for Sunoco Logistics done by Econsult Solutions of Mariner East 2 (also called the Pennsylvania Pipe- Philadelphia. The combined projects will support 300- Two of my close friends, the late Lou line Project) is a planned $2.5 billion new under- Blackwell and Rep. Bill Keller, were both 400 permanent jobs and 15,000 jobs a year over a two- longshoremen, and they took me around continued on page 11 year construction period, according to Econsult. the ports early on. Talking to them about the jobs created by port operations made it clear that we all have to do everything we can to grow those operations. I’m a Rochford named WTA “Person of the Year” former member of the Delaware River Port Authority’s board. So I was able to The Beacon is particularly for his ongoing dedication to the get a bird’s eye view of the importance pleased to announce that the World port . we see him as a champion of maritime activities. All that shipping Trade Association of Philadelphia and recognize his role in pushing activity passes under DRPA’s bridges, has named Exchange President forward the dredging project that and a lot of the resulting trucking activity Dennis Rochford as its 2015 Person is so important to the members of passes over those bridges. So, you can’t of the Year. the port community,” said Clayton help but focus on the impact of maritime The award recognizes an indi- Manthorp, WTA president. trade when you’re on that board. vidual who consistently strives to “It is a distinct privilege to be Q: It’s said that dredging the Delaware improve the port and its business cli- recognized by the World Trade As- River is the most important public mate. The WTA selected Rochford sociation,” Rochford said. “This is works project in the region’s modern for his long-standing and staunch meaningful not only to me and to history. How did you get involved in advocacy of the 45-foot Main Chan- the Maritime Exchange, but it also the fight to move that project? Maritime Exchange President Dennis nel Deeping project, now nearing underscores how important deep- Rochford will receive the Person of the completion after decades of activity. ening the channel is to this port re- Year award at the World Trade Associa- “We are excited to honor Den- gion.” continued on page 7 tion Annual Banquet on September 30. nis Rochford as our man of the year The Beacon 2 Summer 2015 Energy a major theme for Del. River ports duction of gasoline, diesel and other fuels – in- include efficiencies and the lack thereof in ex- crease by up to 70% compared to the fourth pected and new distribution patterns. quarter of 2014. Notable global leaders representing the Delta Airlines, which acquired the once- energy, government, finance, transportation, shuttered ConocoPhillips facility in Trainer and trade sectors are expected to participate. and is operating it as Monroe Energy, is also Included are the government of Canada, Apex thriving. Monroe recently posted first quarter Companies, Citi Group, Blank Rome, Drexel 2015 earnings of $86 million. This compares University/Institute for Energy and the Envi- to the $41 million it lost during the same pe- ronment, and the Federal Reserve Banks of riod in 2014. Dallas and Philadelphia. This amazing resiliency demonstrates the This conference should provide an excep- While the global energy marketplace con- ability of our port community to acclimate to tional opportunity to view energy transporta- tinues to change in far-reaching and dynam- dramatic changes in the ways that energy is tion changes occurring on the Delaware River ic ways, the Delaware River port complex is both produced and consumed throughout our with new eyes and a fresh, clear perspective. uniquely positioned to serve as one of this na- country and the world. Several factors, including the development of tion’s more innovative energy transportation A major conference scheduled to take Mariner East and the soon-to-be-completed hubs. place in Philadelphia this fall will address 45-foot channel deepening project, are pieces In a recent column, I talked about our local these themes and more. Hosted by the Glob- of the puzzle that contribute to an exciting petroleum industry’s adaptive and resilient na- al Interdependence Center, the conference, environment for our region to become a key ture. This has been more than amply evidenced titled “Energy Interdependence in the West- player as an energy and transportation center. by the creative and visionary spirit shown by ern Hemisphere,” will focus on physical and The Exchange is both sponsoring and at- business leaders and investors who worked in financial infrastructures of midstream energy tending the November 5 conference. We en- concert with labor and public officials to effect companies, new energy trade patterns, and our courage members who are interested in these necessary positive change. region’s potential to claim a vital role in the developments to join us. The end result of much of that activity, as achievement of energy interdependence in the See https://www.interdependence.org/ you’ll read on page 1 of this newsetter, is the Western Hemisphere. events/browse/programs/energy-interdepen- already-successful Mariner East 1 project. Discussions are expected to center on iden- dence-western-hemisphere/ for details and Equally important has been the reopening of tifying and leveraging trade flows and net- registration information. the Delaware City Refinery, which may soon works, recognizing energy supply chains and see deliveries of crude products – used for pro- modes of transportation, and ascertaining our region’s energy assets and infrastructures, to Summer 2015 The Beacon 3 What can Exchange operations do for you? “Maritime Exchange, Scott here. the Delaware River port complex and in difficulties should be transparent to Laura Miller, Robb Reyes, and Karen How can I help you?” other regions of the U.S.
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