SunVit Pipeline to connect Midland Texas with Permian Express 2
SunVit Pipeline LLC, a newly formed joint venture between Vitol Inc (“Vitol”) and Sunoco Pipeline L.P. (“Sunoco”) is set to build a pipeline to connect the Midland Texas market with Sunoco’s recently announced Permian Express 2 pipeline.
SunVit will provide enhanced logistical flexibility for crude oil exiting the Midland, Texas market. The 20” crude oil pipeline will run from Midland, Texas, to Garden City, Texas, where it will connect to Sunoco’s Permian Express 2 pipeline, as well as other existing Sunoco pipelines, enabling it to access U.S. Gulf Coast refineries.
SunVit’s primary operating assets, including an anticipated 500,000 barrels of operating storage, will be constructed adjacent to Vitol’s existing Midland crude oil terminal and will have receipt and delivery connectivity with Vitol’s tanks. The SunVit pipeline will operate under a joint tariff as part of Permian Express 2 and is expected to commence operating in 2015.
“SunVit represents an opportunity to work with a strong partner in servicing the growth in West Texas oil production. It is also an important new step in expanding Vitol’s domestic crude oil business,” commented Mike Loya, President of Vitol, Inc. “We look forwarding to growing SunVit with Sunoco to facilitate our customers’ increasing need to get their production to market efficiently.”
Vitol’s West Texas assets include a crude oil terminal with over one million barrels of storage capacity, multiple truck unloading locations and over 100 miles of pipeline. Vitol USA provides crude oil marketing services in the Permian, offshore Gulf of Mexico and all of the major shale basins in the U.S. Sunoco and Vitol will each have a 50% ownership in SunVit.
For More Information;
Don Goldberg (US)
Elizabeth Adams, Brunswick (UK)
+44 207 396 5331
Andrea Schlaepfer, Vitol
+44 207 973 4230
Notes to editors
The Vitol Group was founded in 1966 in Rotterdam, the Netherlands. Since then the company has grown significantly to become a major participant in world commodity markets and is now the world’s largest independent energy trader. Its trading portfolio includes crude oil, oil products, LPG, LNG, natural gas, coal, electricity, agricultural products, metals and carbon emissions. Vitol trades with all the major national oil companies, the integrated oil majors and the independent refiners and traders. Globally Vitol trades over 5 million barrels of crude oil and oil products per day and revenues in 2013 were $307 billion.
For more information: www.vitol.com