Crude Oil Pipeline System

The Sunoco Logistics Crude Oil Pipeline System transports crude oil in the southwest and midwest United States, principally in Oklahoma and Texas. The segment contains approximately 5,600 miles of crude oil trunk pipelines for high-volume, long-distance transportation, and approximately 500 miles of crude oil gathering lines that supply the trunk pipelines. The segment includes West Texas Gulf Pipe Line Company, a wholly-owned subsidiary, a controlling financial interest in Mid-Valley Pipeline Company, and an equity interest in each of SunVit Pipeline LLC, Bayou Bridge Pipeline, LLC, and Bakken Holdings Company LLC.  In addition, we own a 37 percent undivided interest in the approximately 100-mile Mesa Pipe Line.  Our pipelines access several trading hubs, including the largest trading hub for crude oil in the United States located in Cushing, Oklahoma, as well as other trading hubs located in Midland, Colorado City and Longview, Texas. Our crude oil pipelines also deliver to and connect with other pipelines that deliver crude oil to a number of refineries. For more information on all of our assets and on their locations, visit our Asset Map.

Our pipelines in the southwest United States include approximately 3,150 miles of crude oil trunk pipelines and approximately 300 miles of crude oil gathering pipelines in Texas. Revenues are generated from tariffs paid by shippers utilizing our transportation services.  We also own and operate a crude oil pipeline and gathering system in Oklahoma. This system contains approximately
1,050 miles of crude oil trunk pipelines and approximately 200 miles of crude oil gathering pipelines. We have the ability to deliver substantially all of the crude oil gathered on our Oklahoma system to Cushing.  We are one of the largest purchasers of crude oil from producers in the state, and our crude oil acquisition and marketing business is the primary shipper on our Oklahoma system.

Our pipelines in the midwest United States consist of a controlling financial interest in the Mid-Valley pipeline system which owns approximately 1,000 miles of crude oil pipelines that originate in Longview, Texas and pass through Louisiana, Arkansas, Mississippi, Tennessee, Kentucky, and Ohio, and terminate in Samaria, Michigan. This pipeline provides crude oil to a number of refineries, primarily in the midwest United States.  In addition, we own approximately 100 miles of crude oil pipeline that runs from Marysville, Michigan to Toledo, Ohio, and a truck injection point for local production at Marysville. This pipeline receives crude oil from the Enbridge Mainline Pipeline system for delivery to refineries located in Toledo, Ohio and to Marathon's Samaria, Michigan tank farm, which supplies its refinery in Detroit, Michigan.

Nearly all of our crude oil pipelines are common carrier lines, and the tariff rates on all of our pipelines (wholly owned and joint venture) are regulated by either the Federal Energy Regulatory Commission (for interstate movements) or individual state agencies (for intrastate movements).

Major Organic Projects

West Texas Crude Expansion Projects

The West Texas – Longview Access and West Texas – Houston Access were developed to deliver crude oil from West Texas to the Mid-Valley Pipeline at Longview, Texas and to the Houston, Texas market. The projects have initial capacity to transport approximately 40,000 barrels per day to Houston, and approximately 30,000 barrels per day to Longview. The West Texas – Houston Access project was operational in Q2 2012.  The West Texas – Longview Access project was operational in Q2 2013.  The West Texas-Nederland Access was developed to deliver crude oil from West Texas to SXL’s Nederland Terminal at Nederland, Texas with initial capacity to transport approximately 40,000 barrels per day to Nederland. The West Texas – Nederland Access project was operational in Q3 2014.

Permian Express Phase I
Permian Express Phase I provides continuous pipeline service from Wichita Falls, Texas to Nederland/Beaumont, Texas markets. At Wichita Falls, a connection from Basin Pipeline was also provided. Due to the use of existing assets, the capacity to transport approximately 90,000 barrels per day to Nederland/Beaumont was operational in the first quarter of 2013. Capacity increased to 150,000 barrels per day in Q1 2014.

Permian Express 2

The Permian Express 2 pipeline project provides for the transport of crude oil from the Permian Basin, with origins in multiple locations in West Texas: Midland, Garden City and Colorado City. With an initial capacity of approximately 200,000 barrels per day, Permian Express 2 began to deliver to multiple refiners and markets in July 2015.

Granite Wash Extension
Granite Wash Extension provides approximately 70,000 barrels per day of crude oil takeaway capacity for the growing production from the Granite Wash Shale in the northeastern Texas panhandle and portions of western Oklahoma. We constructed approximately 200 miles of new pipeline, originating in Wheeler County, Texas and terminating in Ringgold, Texas, and new pump stations and truck unloading facilities. At Ringgold, the new pipeline connects with our existing pipelines, which have the ability to transport to Corsicana, Texas. From Corsicana, access to multiple SXL and third-party pipelines provides producers the ability to reach various markets and refineries on the Gulf Coast and in the Mid-Continent. The pipeline was operational in the fourth quarter 2014.

Eaglebine Express
The Eaglebine Express consists of an existing portion of our MagTex refined products pipeline which was converted into crude service and its flow reversed, to provide takeaway capacity for the growing production in the Eaglebine and Woodbine crude areas. Eaglebine Express has the capacity to transport approximately 60,000 barrels per day from Hearne, Texas to Nederland, Texas.  The pipeline was operational in the fourth quarter 2014.

Permian Longview & Louisiana Extension

This project will enable us to provide takeaway capacity for approximately 100,000 additional barrels per day out of the basin at Midland, Texas to be transported to the Longview, Texas area as well as destinations in Louisiana utilizing a combination of our proprietary crude oil system as well as third party pipelines. The project is expected to commence operations in mid-2016.

Delaware Basin Extension

The Delaware Basin Extension project will provide shippers with new takeaway capacity from the rapidly growing Delaware Basin area in New Mexico and West Texas to Midland, Texas. The project is anticipated to have initial capacity to transport approximately 100,000 barrels per day. The pipeline is expected to be operational in mid-2016.

The Bakken Pipeline
The Bakken pipeline project consists of existing and newly constructed pipelines that are expected to provide aggregate takeaway capacity of approximately 450,000 barrels per day 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 our Nederland terminal. The ultimate takeaway capacity target for the project is 570,000 barrels per day. The Bakken pipeline is a joint project with ETP and Phillips 66, and we expect to reach agreement to become the operator of the pipeline system.

Bayou Bridge Pipeline System
The Bayou Bridge pipeline project consists of newly constructed pipeline that will deliver crude oil from Nederland, Texas to Lake Charles, Louisiana. The Bayou Bridge pipeline is a joint project with ETP and Phillips 66, and we will be the operator of the pipeline. Commercial operations are expected to begin in the first quarter 2016. In addition, an open season was run to determine interest in St. James as a destination. The results of the expansion open season will be used by Bayou Bridge to determine the diameter of the BBP pipeline segment from Lake Charles to St. James, Louisiana.  The in-service date for commercial deliveries by Bayou Bridge to St. James, Louisiana, is forecast for the second half of 2017.