MARCUS HOOK, Delaware County (April 29, 2019) — Energy Transfer and the Philadelphia Building Trades today announced the first construction projects at the state-of-the-art Marcus Hook Industrial Complex in Delaware County scheduled under the recently signed Project Labor Agreement (PLA). The Philadelphia Building Trades is the umbrella organization for more than 50 member local unions that work in the greater Philadelphia region.
The two-year PLA covers all on-site growth construction projects, which currently total an estimated $200 million. The initial on-site growth projects scheduled to begin this summer are valued at an estimated $58 million. A second wave of construction projects scheduled for approval this year are valued at an estimated at $133 million.
“This is a great moment for us,” said Kevin Smith, Executive Vice President of Engineering & Construction for Energy Transfer. “The combination of the increased NGLs coming into Marcus Hook through our Mariner East 2 pipeline and the labor force now in place as a result of the PLA, allows us to move forward with this significant investment, which builds upon our vision to develop Marcus Hook into the premier hub for natural gas liquids on the East Coast. Additionally, once Mariner East 2X is brought on line, we will need to further expand our facilities at Marcus Hook to handle the incremental volume of NGLs.”
The first construction projects to kick off under the two-year PLA include a new 56,00 square foot on-site warehouse, additional propane and butane chillers, the rerouting of the facility’s electrical supply and improvements to increase the operational efficiency of one of the storage caverns. Additional construction projects planned for the Marcus Hook facility include added processing and storage capabilities for ethane, increased pumping capabilities on existing pipelines coming into and out of Marcus Hook and more fractionation capabilities. These projects will be brought online as volumes ramp up on the Mariner East system.
As many as 1,200 skilled labor tradesmen are expected to be employed over the next two years as part of the labor agreement for work at the natural gas liquids hub on the bank of the Delaware River. Among the trades to benefit from the PLA are electricians, steamfitters, boilermakers, ironworkers, operating engineers, sheet metal workers, plumbers and more.
“I can tell you without a doubt that what’s happened here at Marcus Hook over the last few years, and what’s happening at Marcus Hook today, is truly transformational,” said Jim Snell, Business Manager for Steamfitters Local 420. “These projects are not just pipelines and processing facilities; they are a lifeline to family-supporting jobs for our members.”
“The membership of IBEW 654 is excited to be part of this project with Energy Transfer Partners,” said William Adams, IBEW Local 654 President/Business Agent.
“This region has had its ups and downs. However, in recent years, we have seen a tremendous upswing. And one of the biggest reasons for that upswing is the revitalization of the Marcus Hook Industrial Complex,” said James Harper, Business Manager for Laborers Local 413. “I cannot emphasize enough how important this facility is to the continued revival of this community and all of Delaware County.”
The PLA promotes a partnership between Energy Transfer, its contractors and the Philadelphia Building Trades that serves to enhance safety, quality and cost, and helps to ensure construction projects run on schedule. It is a pre-hire collective bargaining agreement that establishes the terms and conditions of employment on construction projects within the Marcus Hook complex. Terms of the agreement, from work hours and shift schedules to guidelines for determining wage scales and benefits, apply to all contractors and subcontractors who will execute construction project work at the facility.