Sunoco Logistics Partners LP (NYSE: SXL) has reached agreement with ETP to participate in the Bakken Pipeline project, which is jointly owned by ETP and Phillips 66.
The project consists of existing and newly constructed pipelines that are expected to provide aggregate takeaway capacity of approximately 470,000 barrels per day of crude oil from the Bakken/Three Forks production area in North Dakota to key refinery and terminalling hubs in the Midwest and Gulf Coast including the Partnership’s Nederland terminal.
The ultimate takeaway capacity target for the project is 570,000 barrels per day. The pipeline system is supported by long-term fee based contracts and is expected to begin commercial operations in the fourth quarter of 2016. The Partnership will fund its proportionate share of the construction costs and is expected to have a 30% interest in the project. The Partnership also anticipates reaching agreement with ETP to become the operator of the pipeline system.