Union Leader: Energy Infrastructure Projects a “Godsend”

As the U.S. emerges as a net natural gas exporter for the first time in 60 years, Pennsylvanians are continuing to realize the benefits of responsible energy production here at home.

According to an updated economic analysis released this week by Philadelphia-based Econsult Solutions, Sunoco’s Mariner East 2 pipeline project will create $9 billion in economic benefits for Pennsylvania’s economy, support 57,000 jobs and generate $120+ million in new tax revenue for the Commonwealth.

It’s easy to see why Paul Mullen, IBEW Local 654’s business manager, told the Delaware Co. Daily Times that the energy project has “been a godsend” for local workers and families across the community.

The report’s authors highlight the fact that “Pennsylvania has become a leader in the distribution of natural gas liquids, providing a platform for increased business and job opportunities in the region.”

Key report findings:

57,000 Jobs: Construction will support 57,070 direct, indirect and induced jobs between 2014-2019 (9,500 jobs annually) with earnings of $2.7 billion impacting multiple industries.

$9.1 Billion Economic Impact: The Mariner East projects is estimated to generate a potential one-time economic impact of nearly $9.1 billion in the Commonwealth.

$122 Million in New Tax Revenues: Construction expenditures will generate estimated one-time tax revenues of $122 million to the Commonwealth over the length of the construction period.

Long-Term Benefits: By 2020 the Mariner East projects, the fractionation facility and the associated improvements at MHIC will produce between $140-$210 million of ongoing annual economic impacts in the Commonwealth, supporting between 360-530 jobs with annual earnings between $30-$45 million.

$7 Million in Tax Revenues for Schools: Local impacts include more than $7 million annually in property taxes to municipalities and a school district in Delaware County. The combined property tax paid to Chichester School District, Marcus Hook Borough and Delaware County is expected to triple once the pipeline is in operation.

Here’s what they’re saying:

  • Report: Pipeline Will be a Boon to Region’s Economy and Add Hundreds of Jobs: Mariner East 2 will generate more than $9 billion for the state economy during construction, according to a report issued Monday. … The project will support 9,500 construction jobs over six years, along with up to 530 permanent jobs. … “It’s been a godsend,” [Paul Mullen, business manager of IBEW Local 654], said about pipeline construction and work at the facility in Marcus Hook. “Everybody’s working and earning a good living.” … The report reads that construction will support 57,000 jobs between 2014-2019, or 9,500 jobs annually, with earnings of $2.7 billion. …The refinery at Marcus Hook will produce between $140-$210 million annually and support between 360-530 jobs, with annual earnings of between $30-$45 million, reads the report. In Delaware County, $7 million in property taxes for the Chichester School District and local municipalities will be generated. The combined tax paid to Marcus Hook Borough, Chichester School district and the county is expected to triple when the pipeline is up and running. (Delaware Co. Daily Times, 1/8/18)
  • Energy Infrastructure Project Provides Significant Boost Philadelphia Region: The Mariner East pipelines and related plant could have a potential $9 billion financial impact in the state. … “We say, if you build a pipeline you’re going to hire construction workers and you’re going to buy stuff and you’re going to spend money and it’s going to have an impact on the economy here,” [report author Stephen Mullin said]. Mullin said the $9.1 billion impact is very high compared to most large projects in the state. … The report says the majority of economic gains will occur in Philadelphia and its suburbs. It includes direct, indirect and induced employment impacts, which the report says totals 57,070 jobs earning $2.7 billion. (StateImpact PA, 1/9/18)
  • “We are Giving a Huge, Sustained Boost to Our Entire Commonwealth Economy”: The Mariner East pipelines could be a pipeline for big bucks for Pennsylvania, according to a report published Monday by an economic consulting firm. Econsult Solutions found the Mariner East 1, 2 and 2X natural gas pipelines and a plant serving them could have a $9.1 billion impact statewide. … The report said the project will lead to 57,070 jobs paying $2.7 billion over six years, with Philadelphia and the surrounding area being the major beneficiaries. … “Pipelines and energy infrastructure are creating good-paying jobs across our region,” said MSC president David Spigelgmyer. “Important projects like these, built overwhelmingly by local laborers, safely move affordable energy to consumers – which is so critical in cold weather like we’ve experienced recently – while providing a boost to manufacturers across the commonwealth.” Washington County Chamber president Jeff Kotula said: “We are not just building a modern energy infrastructure with the Mariner East projects. We are giving a huge, sustained boost to our entire commonwealth economy.” (Observer-Reporter, 1/10/18)
  • Energy Infrastructure Supports Tens-of-Thousands of Pa. Jobs: Econsult more than doubled its 2015 estimated direct and indirect economic impact of the Mariner East project from $4.2 billion to $9.1 billion, attributing the higher estimate to the addition of a third pipeline, as well as the construction of a gas-liquids processing facility in Marcus Hook. The project, which is designed to carry gas liquids such as propane from the Marcellus Shale to the Marcus Hook terminal, will support 57,070 jobs between 2014-2019, or 9,500 jobs a year, with total earnings of $2.7 billion. In addition to the one-time economic boost during construction, the associated projects will produce $140-$210 million of ongoing annual economic impact in Pennsylvania. (Phila. Inquirer, 1/8/18)

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