Sunoco Logistics Partners’ (SXL) Mariner NGL (natural gas liquids) systems have not performed according to expectations in recent quarters. Throughput volumes at Mariner East 1 were impacted by some technical challenges, while Mariner South “saw reduced volume on this system as the international arbitrage became challenged and shippers experienced difficulties at discharge ports.”
However, SXL has remained bullish on its NGLs (natural gas liquids) growth story as we have seen strong NGL supply growth from the liquids-rich Marcellus Shale and Utica Shale plays, in addition to higher NGL demand.
Notably, NGL production in the Appalachian region has increased to 10.5 million barrels per day in May 2016 from 1.1 million barrels per day in May 2011.
Continue to the next part for a discussion of SXL’s institutional investors.