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Sunoco Logistics Partners, L.P. - Platts · Sunoco Logistics Asset Overview Serve key U.S. refining...

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Sunoco Logistics Partners, L.P. Platts NGL Conference – September 24, 2013
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Page 1: Sunoco Logistics Partners, L.P. - Platts · Sunoco Logistics Asset Overview Serve key U.S. refining and production centers in U.S. Northeast, Midwest, and Gulf Coast 2,500 miles of

Sunoco Logistics Partners, L.P. Platts NGL Conference – September 24, 2013

Page 2: Sunoco Logistics Partners, L.P. - Platts · Sunoco Logistics Asset Overview Serve key U.S. refining and production centers in U.S. Northeast, Midwest, and Gulf Coast 2,500 miles of

Forward-Looking Statements Statements we make that are not historical facts are forward-looking statements. These forward-looking statements are not guarantees of future performance. Although we believe the assumptions underlying these statements are reasonable, investors are cautioned that such forward-looking statements involve risks and uncertainties that may affect our business and cause actual results to differ materially from those discussed in this presentation. Such risks and uncertainties include economic, business, competitive and/or regulatory factors affecting our business, as well as uncertainties related to the outcomes of pending or future litigation. Sunoco Logistics Partners L.P. has included in its Annual Report on Form 10-K for the year ended December 31, 2012, and in its subsequent SEC filings, cautionary language identifying important factors (though not necessarily all such factors) that could cause future outcomes to differ materially from those set forth in the forward-looking statements. For more information about these factors, see our SEC filings, available on our website at www.sunocologistics.com. We expressly disclaim any obligation to update or alter these forward-looking statements, whether as a result of new information, future events or otherwise. This presentation includes certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of non-GAAP financial measures to GAAP financial measures are provided in the appendix to this presentation. You should consider carefully the comparable GAAP measures and the reconciliations to those measures provided in this presentation.

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Page 3: Sunoco Logistics Partners, L.P. - Platts · Sunoco Logistics Asset Overview Serve key U.S. refining and production centers in U.S. Northeast, Midwest, and Gulf Coast 2,500 miles of

Sunoco Logistics Asset Overview

Serve key U.S. refining and production centers in U.S. Northeast, Midwest, and Gulf Coast

2,500 miles of refined

product and NGL pipelines

5,400 miles of crude

pipelines 40 active refined product

terminals ~46 MMB of combined

crude oil, refined products and NGL storage capacity

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Page 4: Sunoco Logistics Partners, L.P. - Platts · Sunoco Logistics Asset Overview Serve key U.S. refining and production centers in U.S. Northeast, Midwest, and Gulf Coast 2,500 miles of

Sunoco Logistics and Energy Transfer Assets

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Page 5: Sunoco Logistics Partners, L.P. - Platts · Sunoco Logistics Asset Overview Serve key U.S. refining and production centers in U.S. Northeast, Midwest, and Gulf Coast 2,500 miles of

The Mariner NGL Takeaway Story

The early “Ethane Situation”…

Volume Estimates – 2009/2010 vs. today

The Mariner Concept – Re-purposing of existing pipelines

Timing critical for ethane as blending opportunities diminish Market development as concepts emerge

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Page 6: Sunoco Logistics Partners, L.P. - Platts · Sunoco Logistics Asset Overview Serve key U.S. refining and production centers in U.S. Northeast, Midwest, and Gulf Coast 2,500 miles of

Mariner West Ethane Pipeline Overview

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Houston, PA

Mariner West

New Pipeline

Existing Sunoco Pipeline

Sarnia

Pittsburgh

Philadelphia

Origin – MarkWest Houston fractionator

New pipeline to

Vanport, PA Converted existing

8/10” products pipeline to Sarnia

Line fill in progress

Potential 30 MBD expansion

47 MBD Ethane Pipeline from Houston, PA to Sarnia, Canada

Page 7: Sunoco Logistics Partners, L.P. - Platts · Sunoco Logistics Asset Overview Serve key U.S. refining and production centers in U.S. Northeast, Midwest, and Gulf Coast 2,500 miles of

Midwest products to Eastern Ohio and Western Pennsylvania:

Strong demand to move Midwest refined products east

• Refinery expansions • Refinery economics

Utilizes existing and new

assets

Successful Open Season • Initial capacity of 85 MB/D • Expandable to 110 MB/D

Mid 2014 projected start-up

Allegheny Access – Refined Products

Allegheny Access Ohio Products to Pittsburgh

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Page 8: Sunoco Logistics Partners, L.P. - Platts · Sunoco Logistics Asset Overview Serve key U.S. refining and production centers in U.S. Northeast, Midwest, and Gulf Coast 2,500 miles of

New 12” pipeline from Houston to Delmont

Convert 8” pipeline from

Delmont to Marcus Hook

Construct E/P splitter at MH Terminal

Construct ethane chilling

and refrigerated storage

Construct propane chilling and refrigerated storage

Mariner East 1 Overview

72 MBD Ethane/Propane Mix Pipeline and Export Terminal in Northeast

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12”

8”

Page 9: Sunoco Logistics Partners, L.P. - Platts · Sunoco Logistics Asset Overview Serve key U.S. refining and production centers in U.S. Northeast, Midwest, and Gulf Coast 2,500 miles of

Marcus Hook Industrial Complex Acquired from Sunoco, Inc. Continued commitment to growth in

natural gas liquids Anchors the Mariner East project Located near the Marcellus and Utica

shales, the site offers many features: Five underground caverns for

storing NGLs Deep water berths, rail access,

truck capability and advantageous pipeline infrastructure

A northeast NGL hub, capable of handling a broad array of NGLs and located <300 miles from the Marcellus, is very attractive to producers as well as local and overseas consumers

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Page 10: Sunoco Logistics Partners, L.P. - Platts · Sunoco Logistics Asset Overview Serve key U.S. refining and production centers in U.S. Northeast, Midwest, and Gulf Coast 2,500 miles of

Marcus Hook Docks

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4 Ship Docks VLGC Capable

2A-Ethane 3B

3A-Propane Butane

1A

3C-Propane Butane

Page 11: Sunoco Logistics Partners, L.P. - Platts · Sunoco Logistics Asset Overview Serve key U.S. refining and production centers in U.S. Northeast, Midwest, and Gulf Coast 2,500 miles of

SXL Delaware River Expertise

Managed 800+MBPD of marine feedstock

Thousands of marine

movements yearly Excellent Coast Guard and

Pilots relationship Area refineries dependent

upon marine supplied feedstock

Knowledge and experience

with marine LPG movements

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Marcus Hook

Page 12: Sunoco Logistics Partners, L.P. - Platts · Sunoco Logistics Asset Overview Serve key U.S. refining and production centers in U.S. Northeast, Midwest, and Gulf Coast 2,500 miles of

Mariner West and East – Natural Gas Liquids

Mariner East E/P from Houston to Marcus Hook

Mariner West Ethane from Houston to Sarnia

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Page 13: Sunoco Logistics Partners, L.P. - Platts · Sunoco Logistics Asset Overview Serve key U.S. refining and production centers in U.S. Northeast, Midwest, and Gulf Coast 2,500 miles of

Mariner South Overview

Origin - Lone Star’s

fractionator in Mont Belvieu SXL pipeline to Nederland

Terminal for exporting Construct chilling and

refrigerated tankage at Nederland

1Q15 projected start-up

Potential expansion

Mariner South NGLs from Mont Belvieu to Nederland

200 MBD Propane/Butane Pipeline and Export Terminal on Gulf Coast

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Page 14: Sunoco Logistics Partners, L.P. - Platts · Sunoco Logistics Asset Overview Serve key U.S. refining and production centers in U.S. Northeast, Midwest, and Gulf Coast 2,500 miles of

New and existing pipeline from Basin Fractionators to the Marcus Hook

Convert Mariner East 1 pipeline to ethane only service

Construct refrigerated propane and butane storage Utilize existing SXL tankage for natural gasoline storage and distribution

Enhance ethane, propane, butane and natural gasoline export capabilities

Potential PDH plant Online 24 to 27 months from execution of contracts

Mariner East Phase 2 Overview

Propane/Butane/Natural Gasoline Batching Pipeline to Marcus Hook

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Page 15: Sunoco Logistics Partners, L.P. - Platts · Sunoco Logistics Asset Overview Serve key U.S. refining and production centers in U.S. Northeast, Midwest, and Gulf Coast 2,500 miles of

Mariner East Phase 2

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Mom

entu

m

Page 16: Sunoco Logistics Partners, L.P. - Platts · Sunoco Logistics Asset Overview Serve key U.S. refining and production centers in U.S. Northeast, Midwest, and Gulf Coast 2,500 miles of

Mariner East 2 Export Shipment Advantages

World class ship loading rates (BPH)

Virtually unlimited dock capacity

Un-crowded ship channel Shipping logistics

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Page 17: Sunoco Logistics Partners, L.P. - Platts · Sunoco Logistics Asset Overview Serve key U.S. refining and production centers in U.S. Northeast, Midwest, and Gulf Coast 2,500 miles of

Mariner Projects: Comprehensive NGL Takeaway

Mariner East and West provided flexible, scalable NGL takeaway options for the Marcellus and Utica basins

Mariner South provides a much needed, efficient export project for

the USGC through Nederland

World class export capabilities through Marcus Hook and Nederland – Connect increasing production with growing international

demand

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