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Marathon Petroleum, Markwest Energy detail alkylate, NGL pipe projects
HOUSTON, December 3, 2015 (PCW) – Marathon Petroleum and its newly-acquired subsidiary Markwest Energy on Thursday provided further details on infrastructure projects, including an Ohio alkylate facility and repurposing an existing pipeline to move NGLs down to the Gulf Coast.
As early as August, the two companies had discussed building a possible alkylation facility in Ohio. Although production capacity was not disclosed, the companies during its investor day Thursday said the facility would come online in the second half of 2020 at a cost of between $1.5 and $2 billion.
Executives pointed to US imports of more than 500,000 b/d of gasoline blendstock components into to Northeast and that the new alkylate facility could displace such imports. Butane is now readily available in both the Marcellus and Utica shales, which could then be processed into alkylate for gasoline blending.
Additionally, the newly combined company is also looking at repurposing the currently idled 210,000 b/d Cornerstone refined products pipeline -- which runs from Bourbon, Illinois, to Beaumont, Texas -- to moving NGLs from the Midcontinent down to the Gulf Coast.
Marathon's acquisition of Markwest was approved by its stockholders Wednesday.
The pipeline is a 50/50 joint-venture between Marathon and Enterprise Products Partners. –- Samantha Hartke