Nederland Terminal

The Sunoco Logistics Nederland Terminal, located on the Sabine-Neches waterway between Beaumont and Port Arthur, Texas, is a large marine terminal that provides storage and distribution services for refiners and other large transporters of crude oil. The terminal receives, stores, and distributes crude oil, feedstocks, lubricants, petrochemicals, and bunker oils (used for fueling ships and other marine vessels) and also blends lubricants. The terminal currently has a total shell storage capacity of approximately 19.6 million shell barrels with individual tank capacities of up to 660,000 barrels.

The Nederland Terminal can receive crude oil and other products at each of its five ship docks and three barge berths. The five ship docks are capable of receiving over 1.0 million barrels per day of crude oil. The terminal can also receive crude oil through a number of pipelines, including the Shell pipeline from Louisiana, the offshore Cameron Highway pipeline, the ExxonMobil Pegasus pipeline, the United States Department of Energy (“DOE”) Big Hill pipeline, the DOE West Hackberry pipeline, and our own Crude Oil Pipeline System. The DOE pipelines connect the terminal to the United States Strategic Petroleum Reserve’s West Hackberry caverns at Hackberry, Louisiana and Big Hill near Winnie, Texas. Beginning in April 2006, ExxonMobil reversed the flow of crude oil on its Pegasus pipeline from Patoka, Illinois to the Nederland Terminal, which resulted in the flow of Canadian crude oil to the Nederland Terminal.

Crude oil and other products are delivered out of the Nederland Terminal via pipeline, barge, ship, rail, and truck. In the aggregate, the terminal is capable of delivering over 2.1 million barrels of crude oil per day to 12 connecting pipelines, which include: the ExxonMobil pipeline to its Beaumont, Texas refinery; the DOE pipelines to the Big Hill and West Hackberry Strategic Petroleum Reserve caverns; the Valero pipeline to its Port Arthur, Texas refinery; two Total pipelines to its Port Arthur, Texas refinery; the Shell pipeline to various Houston, Texas refineries; West Texas Gulf and our own Crude Oil Pipeline System to various points including Longview and Sour Lake, Texas (with connections to the Mid-Valley Pipeline system and CITGO’s pipeline), Seabreeze, Texas; Big Spring, Texas and Midland, Texas.

We are continually upgrading the terminal’s infrastructure and operational flexibility to meet market needs, including the blending of crude oil grades to meet individual refiner specifications. The facility has recently constructed several 660,000 barrel tanks, and has additional space for further expansion.