An Overview of Sunoco’s Terminals Facilities

We discussed Sunoco Logistics Partners’ (SXL) crude oil acquisition and marketing segment in the previous article. Here, we’ll discuss the company’s terminal facilities segment business and assets.

In the terminals facilities business, Sunoco Logistics (SXL) operates crude oil, refined products, and natural gas liquids (or NGL) terminals. The company also operates refined products and NGL acquisition and marketing business. Its aggregate storage capacity is currently at 48 million barrels.

• Refined products terminals: Sunoco Logistics (SXL) currently owns 39 terminals. The terminals provide services like storage, distribution, blending to achieve specified grades of gasoline and middle distillates, and other ancillary services. These terminals primarily provide complementary services to Sunoco Logistics’ products pipelines.
• Nederland Terminal: This marine terminal facility in Texas provides storage and distribution service for refiners and other large transporters of crude oil and NGLs. It has total storage capacity of ~25 million barrels.
• Fort Mifflin Terminal Complex: The terminal has two ship docks and a total storage capacity of ~570 thousand barrels.
• Marcus Hook Industrial Complex: Acquired in 2013, the assets have 3 million barrels of terminalling and storage capacity, including ~2 million barrels of NGL storage capacity. Mariner East 1, which started operation in 4Q14, delivers NGLs from the Marcellus and Utica Shale.
• Eagle Point Terminal: The facility in New Jersey consists of docks, truck loading facilities, and a tank farm. In 4Q14, Sunoco Logistics acquired land at Eagle Point under a purchase option embedded in an existing lease with Sunoco. The terminal generates revenue primarily by charging fees based on throughput.

Many of the NGLs producers and midstream operators like DCP Midstream (DPM), Plains All American (PAA), and Targa Resources Partners (NGLS) operate terminals for effective storage and distribution. Plains All American (PAA) makes up ~8% of the Alerian MLP ETF (AMLP).