Sunoco 2009 Annual Report Download - page 18

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total of $50 million. In November 2008, the Partnership purchased a refined products pipeline system, refined
products terminal facilities and certain other related assets located in Texas and Louisiana from affiliates of
Exxon Mobil Corporation for $185 million. The Partnership intends to take advantage of additional growth
opportunities in the future, both within its current system and with third-party acquisitions.
At December 31, 2009, the Partnership owned and operated approximately 3,850 miles of crude oil
pipelines and approximately 2,200 miles of refined product pipelines. In 2009, crude oil and refined product
shipments on these pipelines totaled 21.4 and 21.1 billion barrel miles, respectively, as compared to 24.5 and
17.2 billion barrel miles in 2008 and 23.3 and 18.2 billion barrel miles in 2007. These amounts represent 100
percent of the pipeline shipments of these pipelines.
Product terminalling operations include 41 terminals in the Northeast, Midwest and South Central United
States that receive refined products from pipelines and distribute them to Sunoco and to third parties, who in turn
make deliveries to end-users such as retail outlets. Certain product terminals also provide ethanol blending and
other product additive services. During 2009, 2008 and 2007, throughput at these product terminals totaled 462,
436 and 434 thousand barrels daily, respectively. Terminalling operations also include an LPG terminal near
Detroit, MI, a crude oil terminal complex adjacent to Sunoco’s Philadelphia refinery, ship and barge docks
adjacent to Sunoco’s Eagle Point refinery and a refined products terminal adjacent to Sunoco’s Marcus Hook
refinery. During 2009, 2008 and 2007, throughput at these other terminals totaled 591, 653 and 696 thousand
barrels daily, respectively.
The Partnership’s Nederland, TX terminal provides approximately 19.6 million barrels of storage and
provides terminalling throughput capacity exceeding one million barrels per day. Its Gulf Coast location provides
local, south central and midwestern refiners access to foreign and offshore domestic crude oil. The facility is also
a key link in the distribution system for U.S. government purchases for and sales from certain Strategic
Petroleum Reserve storage facilities. During 2009, 2008 and 2007, throughput at the Nederland terminal totaled
597, 526 and 507 thousand barrels daily, respectively. During 2009, the Partnership completed its construction of
new crude oil storage tanks, four of which were placed into service in 2007, three in 2008 and four in 2009. The
Partnership also completed construction of a crude oil pipeline from the Nederland terminal to Motiva Enterprise
LLC’s Port Arthur, TX refinery and three related storage tanks with a combined capacity of 2.0 million barrels in
2009 at a total cost of $94 million.
The Partnership’s crude oil pipeline operations in the South Central United States are complemented by
crude oil acquisition and marketing operations. During 2009, 2008 and 2007, approximately 182, 177 and
178 thousand barrels daily, respectively, of crude oil were purchased (including exchanges) from third-party
leases and approximately 411, 402 and 400 thousand barrels daily, respectively, were purchased in bulk or other
exchange transactions. Purchased crude oil is delivered to various trunk pipelines either directly from the
wellhead through gathering pipelines or utilizing the Partnership’s fleet of trucks or third-party trucking
operations.
Sunoco has agreements with the Partnership which establish fees for administrative services provided by
Sunoco to the Partnership and provide indemnifications by Sunoco for certain environmental, toxic tort and other
liabilities.
Coke
SunCoke Energy, Inc., through its affiliates (individually and collectively, “SunCoke Energy”), owns and
operates metallurgical coke plants located in Vansant, VA (Jewell), East Chicago, IN (Indiana Harbor), Franklin
Furnace, OH (Haverhill) and Granite City, IL (Granite City) and metallurgical coal mines located in Virginia and
West Virginia. SunCoke Energy is also the operator of a metallurgical coke plant in Vitória, Brazil (Vitória).
Aggregate nominal coke production capacity from the plants in the United States approximates 3.67 million
tons per year, while production capacity from the Vitória facility approximates 1.7 million tons per year. The
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