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Energy Transfer Affiliates to Move Forward with a Gulf Coast LPG Export/Import Project

Shell Signs Long-Term LPG Export/Import Agreements

DALLAS--(BUSINESS WIRE)--May. 6, 2013-- Sunoco Logistics Partners L.P. (NYSE: SXL), an affiliate of Dallas-based Energy Transfer Partners, L.P. (NYSE: ETP), and Lone Star NGL LLC, a joint venture between ETP and Regency Energy Partners LP (NYSE: RGP), announced today that long-term, fee-based agreements have been executed with Shell Trading US Company (STUSCO) to move forward with a liquefied petroleum gas (LPG) export/import project. STUSCO has committed to the project, known as Mariner South, as an anchor customer.

The Mariner South project will integrate SXL’s existing Nederland Marine Terminal and pipeline from Mont Belvieu, Texas to Nederland, Texas with Lone Star’s Mont Belvieu fractionation and storage facilities, creating a world class LPG export/import operation in the U.S. Gulf Coast. Mariner South will have an initial capacity of 6 million barrels per month and will be designed to load LPG carriers with an approximate capacity of 550,000 barrels. The Mariner South project is expected to be operational in the first quarter of 2015.

The project will utilize Lone Star’s increasing fractionation capacity at Mont Belvieu as well as construction of a new 100,000 barrel per day de-ethanizer to convert propane to international specifications. It also will involve the construction of new refrigerated storage tanks located at the Nederland Terminal to take deliveries into the LPG vessels. The Nederland Terminal will provide 24-hour ship access in the Gulf Coast with a load rate of up to 30,000 barrels per hour. The terminal facility includes existing docks and acreage for future expansion. The project can be expanded to handle additional volumes of products.

“The development of this world class Gulf Coast LPG operation is in response to continued growth in North American NGL production and international demand for LPG supplies,” said Steve Spaulding, Executive Vice President of Lone Star NGL. “We are very pleased to have Shell on board as an anchor customer. The Mariner South project is a clear example of the value created from the synergies between Sunoco Logistics and Lone Star assets.”

“By working together, Lone Star and Sunoco Logistics will provide an expedited solution to meet the growing customer demand for LPG exports from the Gulf Coast,” said Mike Hennigan, President and Chief Executive Officer of Sunoco Logistics. “The Mariner South project builds on the Mariner project franchise we have established in the Northeast to provide comprehensive takeaway solutions for our growing customer base as a direct result of increased shale production.”

Sunoco Logistics Partners L.P. (NYSE: SXL), headquartered in Philadelphia, is a master limited partnership that owns and operates a logistics business consisting of a geographically diverse portfolio of complementary crude oil & refined product pipeline, terminalling, and acquisition & marketing assets. SXL’s general partner is owned by Energy Transfer Partners, L.P. (NYSE: ETP). For more information, visit Sunoco Logistics Partners L.P. web site at www.sunocologistics.com.

Lone Star NGL LLC (Lone Star), a joint venture between Energy Transfer Partners, L.P. (NYSE:ETP) and Regency Energy Partners LP (NYSE: RGP), owns and operates natural gas liquids storage, fractionation, and transportation assets in Texas, Louisiana, and Mississippi. Lone Star's assets include approximately 2,000 miles of natural gas liquids pipelines and 47 million barrels of storage capacity at Mont Belvieu, Texas. ETP owns and operates a diversified portfolio of energy assets, including approximately 62,000 miles of natural gas pipelines and related facilities that gather, treat, process, transport and store natural gas. RGP provides midstream natural gas and natural gas liquids gathering and processing, contract compression, treating and transportation through more than 7,300 miles of gas gathering pipelines and related facilities. Energy Transfer Equity, L.P. (NYSE: ETE) owns the general partner of both ETP and RGP.

Energy Transfer Partners, L.P. (NYSE: ETP) is a master limited partnership owning and operating one of the largest and most diversified portfolios of energy assets in the United States. ETP currently has natural gas operations that include approximately 62,000 miles of gathering and transportation pipelines, treating and processing assets, and storage facilities. ETP also owns general partner interests, 100% of the incentive distribution rights, and approximately 33.5 million limited partner units in Sunoco Logistics Partners L.P. (NYSE: SXL), which operates a geographically diverse portfolio of crude oil and refined products pipelines, terminalling and crude oil acquisition and marketing assets. ETP also holds a 70% interest in Lone Star NGL, a joint venture that owns and operates natural gas liquids storage, fractionation and transportation assets in Texas, Louisiana and Mississippi. ETP owns 100% of ETP Holdco, which owns Southern Union Company and Sunoco, Inc. ETP’s general partner is owned by ETE. For more information, visit the Energy Transfer Partners, L.P. web site at www.energytransfer.com.

Regency Energy Partners LP (NYSE: RGP) is a growth-oriented, midstream energy partnership engaged in the gathering and processing, contract compression, treating and transportation of natural gas and the transportation, fractionation and storage of natural gas liquids. RGP also holds a 30% interest in Lone Star NGL LLC, a joint venture that owns and operates natural gas liquids storage, fractionation, and transportation assets in Texas, Louisiana and Mississippi. Regency’s general partner is owned by Energy Transfer Equity, L.P. (NYSE: ETE). For more information, visit the Regency Energy Partners LP web site at www.regencyenergy.com.

Forward-Looking Statements

Certain information provided in this news release constitutes forward-looking statements. The words "anticipate," "expect," "project," "estimate," "forecast" and similar expressions are intended to identify such forward-looking statements. Although Energy Transfer, Regency, Sunoco Logistics and Lone Star NGL (collectively, the “Companies”) believe that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of risks and uncertainties pertaining to operating performance, regulatory parameters, weather, economic conditions and commodity prices. You can find a discussion of those risks and uncertainties in filings made by Energy Transfer, Regency and Sunoco Logistics with the Securities and Exchange Commission. While the Companies make these forward-looking statements in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. Except as may be required by applicable securities laws, none of the Companies assumes any obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise. Please visit www.energytransfer.com, www.regencyenergy.com or www.sunocologistics.com for more information.

Source: Energy Transfer Partners, L.P. and Regency Energy Partners LP

Sunoco Logistics Partners:
Investors
Pete Gvazdauskas, 215-977-6322
or
Media
Joseph McGinn, 215-977-3237
or
Energy Transfer Partners/Lone Star:
Investors
Brent Ratliff, 214-981-0700
or
Media
Vicki Granado, 214-599-8785
or
Regency Energy Partners/Lone Star:
Investors
Lyndsay Hannah, 214-840-5477
or
Media
Vicki Granado, 214-599-8785