Sunoco Logistics Partners LP affiliates Sunoco Pipeline LP and Inland Corp. have begun a binding open season for the Allegheny Access Pipeline project, transporting refined products from the Midwest to eastern Ohio and western Pennsylvania markets. Allegheny Access will have an initial capacity of 85,000 b/d, expandable to as much as 110,000 b/d.
Sunoco, operator and 83.8% shareholder of Inland, expects the project, using a combination of new and existing assets, to be operational first-half 2014. The open season ends Aug. 20. Shell Oil Co. and Midwest Pipeline Holding LLC also hold interests in Inland.
Buckeye Partners LP bought 33 refined products terminals and 1,000 miles of pipeline from BP Products North America in 2011, initially including BP’s then 50% stake in Inland (OGJ Online, Mar. 21, 2011). The other shareholders of Inland, however, exercised their rights of first refusal and purchased all of the Inland shares, leaving none available for Buckeye to purchase.
Inland owns 350 miles of active refined products pipelines. Sunoco Logistics’ assets include 2,500 miles of refined products pipelines.
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