Sunoco 2012 Annual Report Download - page 45

points from Chicago to Wisconsin. This investment is accounted for as an equity method investment,
with the equity income recorded in the Refined Products Pipelines segment.
Growth Capital Program
In 2012, we completed $324 million of organic growth capital projects to improve operational efficiencies,
reduce costs, expand existing facilities and construct new assets to increase storage, throughput volume or the
scope of services we are able to provide. In 2012, these included projects to expand upon the Partnership’s
refined products acquisition and marketing services, upgrade the service capabilities at the Eagle Point and
Nederland Terminals, invest in the Partnership’s crude oil infrastructure by increasing its pipeline capabilities
through previously announced organic growth projects in West Texas and expanding its trucking fleet, and invest
in the Mariner West and Mariner East pipeline projects.
During 2013, we expect to spend approximately $700 million on expansion capital expenditures related to
organic growth, excluding major acquisitions. This includes spending to capture more value from existing assets
such as the Eagle Point terminal, the Nederland Terminal and our patented butane blending technology.
Expansion capital expenditures in 2013 will also include progress on our previously announced growth projects,
which are summarized as follows:
Mariner East
A joint pipeline and marine project to deliver natural gas liquids produced in the Marcellus Shale Basin to a
storage facility on the east coast (“Project Mariner East”). This project would transport natural gas liquids,
utilizing modified existing pipelines, from western Pennsylvania to the east coast where the natural gas liquids
could be loaded on waterborne vessels for third-party transport to United States ports or export to international
markets. The project will support the transportation of approximately 70,000 barrels per day with the ability to
expand to support higher volumes. We anticipate the project to commence activity in the second half of 2014. As
a result of substantial interest expressed during Open Seasons completed in 2012, we are actively developing a
second phase related to this project.
Mariner West
In 2011, we announced a joint pipeline project with MarkWest Energy to deliver ethane produced in the
Marcellus Shale Basin in western Pennsylvania to the Sarnia, Ontario petrochemical market (“Project Mariner
West”). This project would transport ethane from western Pennsylvania to markets in Sarnia utilizing existing
pipelines, which will be modified for ethane service. We completed a successful Open Season in 2011 which will
enable Project Mariner West to proceed with an initial capacity to transport approximately 50,000 barrels per day
and the ability to expand to support higher volumes. The project is expected to commence operations by July
2013.
Allegheny Access
In 2012, we announced a project to transport refined products from the midwest to eastern Ohio and western
Pennsylvania markets utilizing existing and new assets. We completed a successful Open Season on this project
during 2012 which will provide for initial capacity of 85,000 barrels per day which can be expanded to meet
further demand. The project is expected to commence operations during the first half of 2014.
Permian Express Phase I
In 2012, we announced a project to transport West Texas crude oil to Gulf Coast markets utilizing existing
pipelines. We completed a successful Open Season on this project during 2012 which will provide for initial
capacity of 90,000 barrels per day which will be expanded to 150,000 barrels per day to support further demand.
The Permian Express Phase I project is expected to commence operations in the second quarter of 2013 while we
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