Energy pipelines and terminals operator, Sunoco Logistics Partners LP is on schedule to begin operations of the Permian Express pipeline project, with Phase I of the development expected to start in the second quarter of this year.
The pipeline – targeted to increase the flow of crude oil from west Texas to the Gulf Coast markets – is divided into two phases. Phase I will have an initial capacity of 90,000 barrels per day (bpd) of crude transporting from Wichita Falls, Texas to the Nederland/Beaumont, Texas markets. The 150,000 bpd full capacity of the pipeline is expected to be reached by the end of this year or early next year.
Phase II of Permian Express will have an initial daily takeaway capacity of approximately 200,000 bpd. This phase will witness the delivery of crude oil to the extended eastern refining center St. James, Louisiana via a network of new and existing pipelines. Details regarding the operations of the same will be given with the release of the ongoing quarter’s results.
The Permian Express project will render West Texas producers and Gulf Coast refiners a cost effective and flexible operational structure.
Philadelphia-based Sunoco Logistics, a master limited partnership (MLP), acquires, owns, and operates a geographically diverse portfolio of refined product and crude oil pipelines and terminal facilities.
Sunoco Logistics currently retains a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next 1 to 3 months.
But there are certain other energy firms like InterOil Corporation , Tesco Corporation and Enerplus Corporation (ERF - Free Report) that are expected to significantly outperform the equity market in the next 1 to 3 months. All the 3 stocks currently hold a Zacks Rank #1 (Strong Buy).