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Sunoco Targets Eaglebine Crude with Pipe Conversion

In the coming days, Sunoco Logistics Partners LP plans to launch an open season for its planned Eaglebine Express crude pipeline project to convert a portion of the MagTex refined products pipeline to crude service and reverse the flow to carry crude from Hearne, TX, to the company's terminal in Nederland, TX.

"We see a need to provide adequate capacity for the Eaglebine and Woodbine crude areas and believe this pipeline will help producers deliver their crude oil for the key markets along the Gulf Coast," Sunoco Logistics CEO Mike Hennigan said during an earnings conference call Thursday.

Even though the MagTex pipeline is "well underutilized," Sunoco Logistics still has commitments to refined products customers that it will meet by rerouting these products. The conversion of MagTex will involve the addition of a crude pump station.

"So, we'll be putting some pump stations in service, some truck stations, some crude tankage, but obviously we don't need to do much pipe work at all," Hennigan said. "We think we can get that in service by about mid next year. So we should be able to move a little quicker on that project than a typical new-build type project.

"...[W]e think our jewel is that we can bring that down to the Nederland facility and get it into the Gulf Coast market and distribute it from there. We do plan to launch an open season soon...I mean, we are trying to move this as quickly as we can because we think the market needs that pipeline and crude service."

ISSN © 2577-9877 | ISSN © 2158-8023
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