Sunoco Logistics Partners announced its results for the first quarter 2015, which included mention of the initial start-up of operations on the Allegheny Access refined products pipeline project. The Pennsylvania-based company also announced that it reached an agreement with ETP to participate in the Bakken Pipeline project, which is jointly owned by ETP and Phillips 66.
The project consists of existing and newly constructed pipelines that are expected to provide aggregate takeaway capacity of approximately 470,000 barrels per day (bpd) of crude oil from the Bakken/Three Forks production area in North Dakota to key refinery and terminalling hubs in the Midwest and Gulf Coast including the Partnership’s Nederland terminal.
The ultimate takeaway capacity target for the project is 570,000 bpd. The pipeline system is supported by long-term fee based contracts and is expected to begin commercial operations in the fourth quarter of 2016. The Partnership will fund its proportionate share of the construction costs and is expected to have a 30 percent interest in project. The partnership also anticipates reaching agreement with ETP to become the operator of the pipeline system.
“We are pleased to announce that SXL will have a 30 percent interest in the Bakken Pipeline and anticipates reaching agreement with ETP to become the operator of the pipeline system. This is another example of the synergistic benefits that occur within the Energy Transfer family of partnerships,” said Michael Hennigan, Sunoco Logistics president and CEO. “We are very happy to not only be an owner, but also able to bring our crude oil operating expertise to this pipeline system.”
As for Sunoco Logistics growth, Hennigan added, “Our targeted emphasis on shale production areas continues to anchor our growth plans. We currently project to have approximately $2.5 billion of organic capital in 2015. Despite the current commodity price environment, and decrease in our market-related earnings, our strategy has not changed, our distribution philosophy and expectations have not changed, our capital program has not changed, and we are confident that we will continue to execute our long term plan.”Tags: Pennsylvania, Sunoco Logistics