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 5,300 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 the West Texas Gulf Pipe Line Company ("West Texas Gulf"), a wholly-owned subsidiary containing approximately 600 miles of crude pipleines, a controlling financial interest in Mid-Valley Pipeline Company ("Mid-Valley") containing approximately 1,000 miles of pipeline, and an equity interest in SunVit Pipeline LLC ("SunVit"). 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 is being developed to deliver crude oil from West Texas to SXL’s Nederland Terminal at Nederland, Texas. The project is anticipated to have 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 will provide continuous pipeline service from Wichita Falls, Texas to Nederland/Beaumont, Texas markets. At Wichita Falls, a connection from Basin Pipeline will be 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
In the fourth quarter 2013, we completed a successful Open Season for our Permian Express 2 pipeline. The Permian Express 2 pipeline project involves the construction of approximately 300 to 400 miles of new crude oil pipelines, with origins in multiple locations in West Texas: Midland, Garden City and Colorado City. With an expected initial capacity of approximately 200,000 barrels per day, Permian Express 2 is expected to deliver to multiple refiners and markets beginning Q3 2015.
Granite Wash Extension
In the third quarter 2013, we completed a successful Open Season for our Granite Wash Extension pipeline. The pipeline is expected to provide 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 will construct 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 will connect with our existing pipelines, which have the ability to transport to Corsicana, Texas. From Corsicana, access to multiple SXL and third-party pipelines will provide producers the ability to reach various markets and refineries on the Gulf Coast and in the MidContinent. The pipeline was operational in the fourth quarter 2014.
In the second quarter 2013, we completed a successful Open Season for our Eaglebine Express pipeline. An existing portion of our MagTex refined products pipeline will be 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 is expected to transport approximately 60,000 barrels per day from Hearne, Texas to Nederland, Texas starting in the fourth quarter 2014.
Permian Longview & Louisiana Extension
In the third quarter 2014, we completed a successful Open Season for the Permian Longview & Louisiana Extension. This project will enable us to provide 100,000 barrels per day takeaway capacity out of the basin at Midland and be transported to the Longview area, as well as destinations in Louisiana utilizing a combination of our proprietary crude oil system as well as third-party pipelines starting Mid-2016.
Delaware Basin Extension
In the first quarter 2015, we announced a successful Open Season for the Delaware Basin Extension. This project will deliver crude oil from the Delaware Basin area in New Mexico and West Texas to Midland, Texas. The project will be approximately 125 miles of new construction and will be owned and operated by Sunoco Pipeline L.P. Delaware Basin Extension is currently expected to provide initial transportation service with a capacity of approximately 100,000 barrels per day of crude oil commencing in the first half of 2016.
The Bakken Pipeline Project
In May 2015, the Partnership announced that it has reached 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 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 barrels per day. 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.