Energy pipelines and terminals operator,
Sunoco Logistics Partners LP
), has started a binding open season from Sep 18, 2013 for its
Permian Express 2 pipeline.
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The Permian Express 2 pipeline will support additional takeaway
capacity and is expected to originate at several locations such
as Midland, Garden City and Colorado City in West Texas. Apart
from Sunoco pipelines, Permian Express 2 would also have access
to other third-party pipelines, providing shippers greater
flexibility to reach out to the key markets.
The pipeline project will have an initial carrying capacity of
roughly 200,000 barrels per day. Sunoco expects the pipeline
system to be online by the second quarter of 2015. Depending on
the interest of the shippers in various locations, Sunoco plans
to construct approximately 300 to 400 miles new pipelines.
Management believes that the pipeline project will aid producers
and refiners in supplying Permian crude oil to important markets
on the Gulf Coast and in the MidContinent. It will also help
shippers to reach several destinations such as the partnership's
Nederland terminal with ease.
The partnership plans to reap the benefits from production growth
in the Permian Basin through this project. The future of this
basin looks promising with expectations of annual crude oil
production increasing by approximately 200,000 barrels per day.
Philadelphia-based Sunoco Logistics is a master limited
partnership that acquires, owns and operates a geographically
diverse portfolio of refined products, crude oil pipelines and
Sunoco currently retains a Zacks Rank #2 (Buy), implying that it
is expected to perform better than the broader U.S. equity market
over the next one to three months.
Apart from Sunoco, one can also consider other energy pipelines
and terminals operators like
Magellan Midstream Partners LP
Pioneer Southwest Energy Partners L.P.
) which sport a Zacks Rank #1 (Strong Buy) or
Delek Logistics Partners, LP
) which currently holds a Zacks Rank #2 (Buy).