Reuters reports that Sunoco Logistics Partners is seeking Pennsylvania’s approval to build cryogenic tanks at a site outside of Philadelphia. The tanks will be capable of storing up to 2.4 million barrels of natural gas liquids. Earlier this month, Sunoco announced it was proceeding with a $2.5 billion pipeline project—dubbed Mariner East 2—which will bring 275,000 barrels per day of natural gas liquids to its Philadelphia facility. According to the report:
Analysts say Sunoco is trying to capitalize on a growing export market and position itself to store gas from nearby shale producers as a local alternative to the national NGL hub in Mount Belvieu, Texas.
"Sunoco is basically trying to capture the international market, particularly in northeast and northwest Europe," said Vivek Mathur, a senior analyst at ESAI Energy. "If you're a Marcellus producer and you have an option to move product to the Gulf Coast or through the Mariner East, it makes economic sense to choose Mariner East."