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Energy pipelines and terminals operator, Sunoco Logistics Partners LP (SXL - Analyst Report), has started a binding open season from Sep 18, 2013 for its Permian Express 2 pipeline.

The Permian Express 2 pipeline will support additional takeaway capacity and is expected to originate at several locations such as Midland, Garden City and Colorado City in West Texas. Apart from Sunoco pipelines, Permian Express 2 would also have access to other third-party pipelines, providing shippers greater flexibility to reach out to the key markets.

The pipeline project will have an initial carrying capacity of roughly 200,000 barrels per day. Sunoco expects the pipeline system to be online by the second quarter of 2015. Depending on the interest of the shippers in various locations, Sunoco plans to construct approximately 300 to 400 miles new pipelines.  

Management believes that the pipeline project will aid producers and refiners in supplying Permian crude oil to important markets on the Gulf Coast and in the MidContinent. It will also help shippers to reach several destinations such as the partnership’s Nederland terminal with ease.

The partnership plans to reap the benefits from production growth in the Permian Basin through this project. The future of this basin looks promising with expectations of annual crude oil production increasing by approximately 200,000 barrels per day.

Philadelphia-based Sunoco Logistics is a master limited partnership that acquires, owns and operates a geographically diverse portfolio of refined products, crude oil pipelines and terminal facilities.

Sunoco currently retains a Zacks Rank #2 (Buy), implying that it is expected to perform better than the broader U.S. equity market over the next one to three months.   

Apart from Sunoco, one can also consider other energy pipelines and terminals operators like Magellan Midstream Partners LP (MMP - Analyst Report) and Pioneer Southwest Energy Partners L.P. which sport a Zacks Rank #1 (Strong Buy) or Delek Logistics Partners, LP (DKL - Snapshot Report) which currently holds a Zacks Rank #2 (Buy).

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