Sunoco begins Permian Express oil line open season

Sunoco Pipeline LP has begun a binding open season on its Permian Express Phase I crude oil pipeline. The project would deliver 150,000 b/d of West Texas crude to the Gulf Coast.

For Permian Express Phase I, Sunoco Logistics will reverse its Wortham-to-Wichita Falls pipeline and use excess capacity on the southern leg of its West Texas Gulf pipeline system to create continuous pipeline service from Wichita Falls, Tex., to Nederland and Beaumont, Tex. Permian Express will connect to Basin Pipeline at Wichita Falls.

The use of existing assets will allow an initial capacity of roughly 90,000 b/d to Nederland within 6-9 months. Sunoco expects full capacity by second-half 2013. A second phase of the project could boost capacity by at least 200,000 b/d (OGJ Online, June 22, 2012).

The open season ends July 24. Sunoco will offer commitment terms of 3, 5, or 7 years.

Contact Christopher E. Smith at chriss@ogjonline.com.

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