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Energy Transfer Partners Merged with Sunoco Logistics: Now What?

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Part 4
Energy Transfer Partners Merged with Sunoco Logistics: Now What? PART 4 OF 9

Key Updates on Energy Transfer Partners’ Projects after 1Q17

Capital expenditure

Energy Transfer Partners (ETP) spent $1.2 billion on organic projects in 1Q17. Most of Energy Transfer Partners’ 1Q17 capital was spent on legacy Energy Transfer Partners’ interstate, midstream, and liquids transportation segments and legacy Sunoco Logistics’ NGLs (natural gas liquids) segment. The partnership expects to release a combined 2017 capital forecast in its 2Q17 earnings.


Key Updates on Energy Transfer Partners’ Projects after 1Q17

Project update

Recently, Energy Transfer Partners announced the commencement of two major natural gas pipeline projects to Mexico—the Trans-Pecos Pipeline and Comanche Trail Pipeline.

Energy Transfer Partners expect to bring online “the Midwest Hub near Defiance, Ohio” section of the Rover Pipeline project in July 2017 and the remaining sections of “markets in Michigan and the Union Gas Dawn Hub in November of this year,” as noted in the 1Q17 earnings call.

The partnership added 50,000 bpd (barrel per days) of additional volume commitment in the recent open season for the Bakken Pipeline. With the addition of new commitments, the pipeline’s total contractual capacity rose to 530,000 bpd. The pipeline’s construction is complete. The partnership expects to start transporting crude oil through the pipeline on June 1.

New projects

The partnership announced a few new projects during the 1Q17 earnings call. The project include a 400 mcf/d (million cubic feet per day) processing agreement in North Texas with Enable Midstream Partners (ENBL), a 200 mcf/d processing plant in the Permian region with NGLs produced moving into the Lone Star pipeline, and open seasons for Sunoco Logistics’ Permian Express 3 pipeline expansion project.

Permian Express 3 is initially expected to move ~100,000 bpd of crude oil from the Midland Basin to Nederland, Texas. The pipeline capacity is expected to increase to ~300,000 bpd after more open seasons.

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