Successful open season for ETP’s Crude Pipeline Project
The solution to responsibly transport US crude supplies to US markets
Significant long-term binding shipper commitments secured to support
DALLAS--(BUSINESS WIRE)--Jun. 25, 2014--
Energy Transfer Partners, L.P. (NYSE:ETP)
today announced that its Board of Directors has approved building an
approximate 1,100 mile crude oil pipeline (“Bakken Pipeline”) to
transport crude supply from strategic receipt points in the Bakken/Three
Forks production area in North Dakota to Patoka, Illinois, where the
Bakken Pipeline will interconnect with Energy Transfer’s existing
30-inch diameter Trunkline Pipeline (“Trunkline”), which is being
converted from natural gas service to crude transportation service. From
Patoka, shippers will be able to access multiple markets, including
Midwest markets and East Coast markets by rail as well as the Gulf
Coast, via Trunkline, to the Nederland, Texas crude oil terminalling
facility of Sunoco Logistics Partners L.P. (NYSE: SXL). Additionally,
Energy Transfer will develop a rail terminal facility in Illinois to
access East Coast refineries.
ETP has secured multiple long-term binding contractual commitments from
shippers sufficient to fully support the construction of a 30-inch
pipeline to Patoka. The 30-inch diameter pipeline will initially provide
320,000 barrels per day of capacity, and ETP could increase the capacity
of the Bakken Pipeline based on additional customer demand. ETP has
already begun the process of ordering steel and negotiating construction
contracts for the Bakken Pipeline, and ETP expects to have the Bakken
Pipeline built and in service, and the Trunkline crude oil conversion
project completed and in service, by the end of 2016. ETP is in
discussions with SXL regarding a potentially significant equity
participation by SXL.
The construction of the Bakken Pipeline project will help further
develop the crude rich areas in and around the Bakken and provide
additional U.S. crude supplies to U.S. markets and refineries along the
East and Gulf Coasts. The pipeline not only supports the continued
growth and production on the Bakken area, but does so in a cost
effective and environmentally responsible manner by reducing the current
utilization of rail and truck transportation as the predominant
alternative to moving Bakken crude oil volumes to major U.S. markets.
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 owns and
operates approximately 35,000 miles of natural gas and natural gas
liquids pipelines. ETP owns 100% of Panhandle Eastern Pipe Line Company,
LP (the successor of Southern Union Company) and Sunoco, Inc., and a 70%
interest in Lone Star NGL LLC, a joint venture that owns and operates
natural gas liquids storage, fractionation and transportation assets.
ETP also owns the general partner, 100% of the incentive distribution
rights, and approximately 33.5 million common 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’s general partner is
owned by ETE. For more information, visit the Energy Transfer Partners,
L.P. web site at www.energytransfer.com.
Energy Transfer Equity, L.P. (NYSE: ETE) is a master
limited partnership which owns the general partner and 100% of the
incentive distribution rights (IDRs) of Energy Transfer Partners, L.P.
(NYSE: ETP), approximately 30.8 million ETP common units, and
approximately 50.2 million ETP Class H Units, which track 50% of the
underlying economics of the general partner interest and IDRs of Sunoco
Logistics Partners L.P. (NYSE: SXL). ETE also owns the general partner
and 100% of the IDRs of Regency Energy Partners LP (NYSE: RGP) and
approximately 40.7 million RGP common units. The Energy Transfer family
of companies owns more than 61,000 miles of natural gas, natural gas
liquids, refined products, and crude oil pipelines. For more
information, visit the Energy Transfer Equity, L.P. web site at www.energytransfer.com.
This press release may include certain statements concerning
expectations for the future that are forward-looking statements as
defined by federal law. Such forward-looking statements are subject to a
variety of known and unknown risks, uncertainties, and other factors
that are difficult to predict and many of which are beyond management’s
control. An extensive list of factors that can affect future results are
discussed in the Partnership’s Annual Report on Form 10-K and other
documents filed from time to time with the Securities and Exchange
Commission. The Partnership undertakes no obligation to update or revise
any forward-looking statement to reflect new information or events.
The information contained in this press release is available on our
website at www.energytransfer.com.
Source: Energy Transfer Partners, L.P.
Brent Ratliff, 214-981-0700
Granado Communications Group