Energy pipelines and terminals operator,
Sunoco Logistics Partners LP
) has inked a long-term deal with Shell Trading US Company
(STUSCO), an affiliate of European energy major
Royal Dutch Shell plc
). Per the deal, STUSCO will become an anchor customer of the
Mariner South project of Sunoco.
ENERGY TRAN PTR (ETP): Free Stock Analysis
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REGENCY ENERGY (RGP): Free Stock Analysis
SUNOCO LOGISTIC (SXL): Free Stock Analysis
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Management reveals that in order to build high-standard export
and import facilities of liquefied petroleum gases (LPG) in the
Gulf Coast of U.S., the Mariner project will unite Mont
Belvieu-based storage and fractionation terminals of Lone Star
NGL LLC with the pipeline facilities of Sunoco, that run from
Mont Belvieu, Texas to Nederland, Texas. Lone Star is a joint
venture between natural gas pipeline operator,
Energy Transfer Partners LP
) and natural gas service provider,
Regency Energy Partners LP
The Mariner South project is expected to have a capacity to
transport 6 million barrels of LPG per month initially. The
project is expected to be online by the first quarter of 2015.
Philadelphia-based Sunoco, a master limited partnership (MLP),
acquires, owns, and operates a geographically diverse portfolio
of refined products and crude oil pipelines and terminal
facilities. Sunoco Logistics is organized into four segments -
Refined Products Pipeline System, Terminal Facilities, Crude Oil
Pipeline System, and Crude Oil Acquisition and Marketing.
Sunoco 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.
With low-risk and stable cash flow-generating energy
infrastructure assets, Sunoco offers investors an opportunity to
capture income growth through steadily-rising cash distributions
and capital appreciation.
However, unfavorable regulatory changes by the Federal Energy
Regulatory Commission (FERC) would impact the partnership's