Sunoco 2008 Annual Report Download - page 19

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At December 31, 2008, the Partnership owned and operated approximately 3,800 miles of crude oil
pipelines and approximately 2,200 miles of refined product pipelines. In 2008, crude oil and refined product
shipments on these pipelines totaled 24.5 and 17.2 billion barrel miles, respectively, as compared to 23.3 and
18.2 billion barrel miles in 2007 and 21.1 and 17.7 billion barrel miles in 2006. These amounts represent 100
percent of the pipeline shipments of these pipelines.
Product terminalling operations include 43 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 2008, 2007 and 2006, throughput at these product terminals totaled 436,
434 and 392 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 2008, 2007 and 2006, throughput at these other terminals totaled 653, 696 and 688 thousand
barrels daily, respectively.
The Partnership’s Nederland, TX terminal provides approximately 17.1 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 2008, 2007 and 2006, throughput at the Nederland terminal totaled
526, 507 and 462 thousand barrels daily, respectively. During 2008, the Partnership continued its construction of
new crude oil storage tanks, four of which were placed into service in 2007 and three in 2008. The Partnership
also continued 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. This project
is expected to be completed in 2009 at a cost of approximately $90 million.
The Partnership’s crude oil pipeline operations in the South Central United States are complemented by
crude oil acquisition and marketing operations. During 2008, 2007 and 2006, approximately 177, 178 and
192 thousand barrels daily, respectively, of crude oil were purchased (including exchanges) from third-party
leases and approximately 402, 400 and 295 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.
Coke
SunCoke Energy, Inc., through its affiliates (individually and collectively, “SunCoke Energy”), operates
metallurgical coke plants located in East Chicago, IN (Indiana Harbor), Vansant, VA (Jewell) and Franklin
Furnace, OH (Haverhill) and metallurgical coal mines located in Virginia. SunCoke Energy is also the operator
of a plant in Vitória, Brazil which commenced operations in 2007. During 2007, SunCoke Energy increased its
investment in the project company that developed the Vitória plant by becoming its sole subscriber of preferred
shares for a total equity interest of $41 million.
Aggregate coke production capacity from the plants in the United States approximates 3.02 million tons per
year, while production capacity from the Vitória facility approximates 1.7 million tons per year. The Indiana
Harbor plant can produce approximately 1.22 million tons per year, the Jewell plant can produce approximately
700 thousand tons per year and the Haverhill plant will be capable of producing approximately 1.1 million tons
per year once its expansion is fully operational (see below). In addition, the Indiana Harbor plant produces heat
as a by-product of SunCoke Energy’s proprietary process that is used by a third party to produce electricity. The
Haverhill facility produces steam that is sold to Sunoco’s Chemicals business and electricity from its associated
cogeneration power plant for the regional power market. These facilities use a proprietary low-cost cokemaking
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