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Sunoco Logistics to Build Additional Mariner East Pipeline - Analyst Blog

As per media releases, energy pipelines and terminals operator Sunoco Logistics Partners LPSXL is willing to construct a second pipeline as a part of its Mariner East II development.

Hence, the partnership is expected to build two pipelines concurrently to carry natural gas liquids (NGL) which contain propane, butane and ethane to the Marcus Hook Industrial Complex from the Marcellus Shale area. Both pipelines will spread over 350 miles.

Sunoco Logistics already got a shipper's commitment before for the first new pipeline which will likely have a 20-inch diameter and an estimated transportation capacity of 275,000 barrels per day. The first pipeline will be operational by 2016 end.

However, the partnership is yet to hold an open season for the second pipeline. According to the media reports, the pipeline will have a 16-inch diameter and will carry NGL at a rate of 225,000 barrels every day. It is to be mentioned, that all those plans are dependent on a successful open season.

Investors should note that Sunoco Logistics plans to expand the Mariner East II pipeline to meet growing demand for Marcellus Shale liquid fuels both in the domestic and the international markets.

Philadelphia-based Sunoco Logistics, a master limited partnership, acquires, owns, and operates a geographically diverse portfolio of refined product and crude oil pipelines and terminal facilities.

The partnership currently carries a Zacks Rank #3 (Hold), which implies that the stock will perform in line with the broader U.S. equity market over the next one to three months.

However, one could consider energy sector players such as Pembina Pipeline Corporation PBA , LRR Energy LP LRE and WPX Energy Inc. WPX . All these stocks sport a Zacks Rank #1 (Strong Buy).

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SUNOCO LOGISTIC (SXL): Free Stock Analysis Report

WPX ENERGY INC (WPX): Free Stock Analysis Report

PEMBINA PIPELN (PBA): Free Stock Analysis Report

LRR ENERGY LP (LRE): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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