Sunoco Logistics Partners LP
), an energy pipelines and terminals operator, has announced the
start of a binding Open Season for its Mariner South Pipeline
from Mar 21, 2013.
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The Mariner South Pipeline will carry export quality propane and
butane from the Mont Belvieu, Texas-based storage and
fractionation area of Lone Star NGL LLC, to the Nederland,
Texas-based terminal of Sunoco Logistics. Lone Star NGL LLC is a
joint venture between natural gas pipeline operator
Energy Transfer Partners LP
) and natural gas service provider
Regency Energy Partners LP
Sunoco Logistics says that depending on the interest of the
shipper, the pipeline will also be available for transporting
other natural gas liquids and petroleum products. The partnership
added that the pipeline is expected to have a capacity of roughly
200,000 barrels per day, which can be extended later on.
Sunoco Logistics expects the pipeline to start operating by the
first quarter of 2015.
Philadelphia-based Sunoco Logistics, a master limited partnership
(MLP), acquires, owns, and operates a geographically diverse
portfolio of refined product and crude oil pipelines and terminal
facilities. Its facilities are available in 17 states, which
include the Northeast, the Midwest, the Southeast and the
Southwest of the country. Sunoco Logistics is organized into four
segments - Refined Products Pipeline System, Terminal Facilities,
Crude Oil Pipeline System, and Crude Oil Acquisition and
With its low-risk and stable cash flow-generating energy
infrastructure assets, Sunoco Logistics offers investors an
opportunity to capture income growth through steadily-rising cash
distributions and capital appreciation.
On the flip side, the actual amount of cash distributed to the
Sunoco Logistics' unitholders may fluctuate. The amount is also
dependent on the partnership's future operating performance,
which is susceptible to movements in margins and throughput
volumes. Realized margins and/or volumes could differ
significantly from our estimates, thereby affecting Sunoco
Logistics' cash distributions.
Sunoco Logistics currently retains a Zacks Rank #3 (Hold),
implying that it is expected to perform in line with the broader
U.S. equity market over the next one to three months.
Meanwhile, one can look at other energy pipelines and terminals
Rose Rock Midstream LP
) as attractive investment. The firm displays better fundamentals
and currently carries a Zacks Rank #1 (Strong Buy).