Sunoco 2015 Annual Report Download - page 14
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12
Marcus Hook Industrial Complex
The Marcus Hook Industrial Complex can receive refined products via marine vessel, pipeline, truck and rail, and can
deliver via marine vessel, pipeline and truck.
Marcus Hook Tank Farm
The Marcus Hook Tank Farm has a total refined products storage capacity of approximately 2 million barrels of refined
products storage. The tank farm historically served Sunoco's Marcus Hook refinery and generated revenue from the related
throughput and storage. In 2012, the main processing units at the refinery were idled in connection with Sunoco's exit from its
refining business. The terminal continues to receive and deliver refined products via pipeline and now primarily provides
terminalling services to support movements on our refined products pipelines.
Refined Products Acquisition and Marketing
Our refined products acquisition and marketing activities include the acquisition, marketing and selling of bulk refined
products such as gasoline products and distillates. These activities utilize our refined products pipeline and terminal assets, as
well as third-party assets and facilities. The operating results of our refined products acquisition and marketing activities are
dependent on our ability to execute sales in excess of the aggregate cost, and therefore we structure our acquisition and
marketing operations to optimize the sources and timing of purchases and minimize the transportation and storage costs. In
order to manage exposure to volatility in refined products prices, our policy is to (i) only purchase products for which sales
contracts have been executed or for which ready markets exist, (ii) structure sales contracts so that price fluctuations do not
materially impact the margins earned, and (iii) not acquire and hold physical inventory, futures contracts or other derivative
instruments for the purpose of speculating on commodity price changes. However, we do utilize a hedge program involving
swaps, futures and other derivative instruments to mitigate the risk associated with unfavorable market movements in the price
of refined products. These derivative contracts act as a hedging mechanism against the volatility of prices.