Sunoco 2006 Annual Report Download - page 28

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refinery to increase ultra-low-sulfur-diesel fuel production capability, $120 million for
other refinery upgrade projects, $98 million related to growth opportunities in the Logistics
business, $190 million towards construction of a $230 million 550,000 tons-per-year
cokemaking facility in Haverhill, OH and $27 million for various other income improve-
ment projects, primarily in Chemicals and Retail Marketing. The $352 million of base in-
frastructure spending includes several projects to upgrade Sunoco’s existing asset base.
These projects include $53 million for new processing equipment, boilers and re-
instrumentation projects at the Company’s refineries and $89 million for additional
investments to upgrade Sunoco’s existing retail network and enhance its APlus®con-
venience store presence.
The 2006 capital expenditures consisted of $285 million for base infrastructure and main-
tenance, $65 million for refinery turnarounds, $118 million to complete spending to com-
ply with the Tier II low-sulfur gasoline and on-road diesel fuel requirements (see
“Environmental Matters” below), $164 million for other environmental projects and $387
million for income improvement projects. Base infrastructure spending included $28 mil-
lion for new processing equipment, boilers and reinstrumentation projects at the Compa-
ny’s refineries, $74 million for additional investments to upgrade Sunoco’s existing retail
network and enhance its APlus®convenience store presence and $9 million for conversion
of the Mobil®sites acquired from ConocoPhillips in 2004 to Sunoco®branded outlets.
The income improvement spending consisted of $193 million associated with the Phila-
delphia Project; $27 million associated with the crude unit upgrading project at the Toledo
refinery; $89 million for growth opportunities in the Logistics business, including work on
projects to expand the Nederland terminal’s pipeline connectivity and storage capacity;
and $78 million for various other income improvement projects across the Company.
The 2005 capital expenditures consisted of $260 million for base infrastructure and main-
tenance, $49 million for refinery turnarounds, $404 million to comply with the Tier II low-
sulfur gasoline and on-road diesel fuel requirements, $94 million for other environmental
projects (which includes $26 million to complete the expansion of the sulfur recovery unit
at the Eagle Point refinery) and $163 million for income improvement projects. Base infra-
structure spending included $17 million for new processing equipment, boilers and re-
instrumentation projects at the Company’s refineries, $78 million for additional
investments to upgrade Sunoco’s existing retail network and enhance its APlus®con-
venience store presence and $6 million for conversion of the Mobil®sites acquired from
ConocoPhillips to Sunoco®branded outlets. The income improvement spending consisted
of $27 million associated with the Philadelphia Project, $16 million to upgrade the crude
oil pipeline and storage facilities in Texas that were acquired from ExxonMobil, $22 mil-
lion to complete the construction of the Haverhill cokemaking facility and $98 million for
various other income improvement projects across the Company.
The 2004 capital expenditures consisted of $248 million for base infrastructure and main-
tenance, $122 million for refinery turnarounds, $208 million for spending to comply with
the Tier II low-sulfur gasoline and on-road diesel fuel requirements, $50 million for other
environmental projects and $204 million for income improvement projects. The other
environmental spending included $9 million related to the expansion of the sulfur recov-
ery unit at the Eagle Point refinery. The income improvement spending consisted of $128
million towards the construction of the Haverhill cokemaking facility, $45 million for
various growth opportunities in the Logistics business, including the acquisition of refined
product terminals in Baltimore, MD, Manassas, VA and Columbus, OH and the purchase
of an additional one-third interest in the Harbor Pipeline, as well as $31 million for various
other income improvement projects across the Company.
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