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Sunoco To Build Oil Tanks For Motiva Refinery

PHILADELPHIA -- Sunoco Logistics Partners L.P. signed agreements with Motiva Enterprises LLC to construct three crude oil storage tanks at Motiva's Nederland, Texas crude oil terminal. The tanks will boast a combined capacity of two million shell barrels.

In addition, Sunoco will construct a 12-mile, 30-inch crude oil pipeline from Motiva's Nederland, Texas crude oil terminal to its Port Arthur, Texas refinery. The pipeline will serve the refinery's expansion project, which is currently completing front-end engineering and design work, the company stated.

The terms of the agreements are 10 years, with construction expected to be completed by January 2010. The expected cost of the projects will exceed $70 million, but will be immediately accreditive to the company’s earnings once completed.

"We are very excited about the opportunity to service Motiva out of the Nederland Terminal," said Deborah M. Fretz, president and CEO of Sunoco Logistics. "Nederland has a long history of providing crude oil storage and delivery services, dating back to the 1901 Spindletop, Texas crude oil discovery. The additional tankage and pipeline will allow the Nederland terminal to provide crude oil to Motiva's Port Arthur refinery, increasing Nederland's extensive connectivity to Gulf Coast and inland refineries."
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