SXL Overview - Sunoco Logistics

advertisement
WELCOME
TO OUR
2012 CUSTOMER CONFERENCE
WHERE WE VALUE
OUR CUSTOMERS!
OPENING REMARKS
MIKE SCHMIDT
MANAGER, PRODUCT MOVEMENT
SXL LEGAL DISCLAIMER
Statements we make that are not historical facts are forward-looking statements.
These forward-looking statements are not guarantees of future performance.
Although we believe the assumptions underlying these statements are reasonable,
investors are cautioned that such forward-looking statements involve risks and
uncertainties that may affect our business and cause actual results to differ materially
from those discussed in this presentation. Such risks and uncertainties include
economic, business, competitive and/or regulatory factors affecting our business, as
well as uncertainties related to the outcomes of pending or future litigation. Sunoco
Logistics Partners L.P. has included in its Annual Report on Form 10-K for the year
ended December 31, 2011 cautionary language identifying important factors (though
not necessarily all such factors) that could cause future outcomes to differ materially
from those set forth in the forward-looking statements. For more information about
these factors, see our SEC filings, available on our website at www.sunocologistics.com.
We expressly disclaim any obligation to update or alter these forward-looking
Statements whether as a result of new information, future events or otherwise.
This presentation includes certain non-GAAP financial measures intended to
supplement, not substitute for, comparable GAAP measures. Reconciliations of nonGAAP financial measures to GAAP financial measures are provided in the appendix
to this presentation. You should consider carefully the comparable GAAP measures
and the reconciliations to those measures provided in this presentation.
OVERVIEW OF
SUNOCO LOGISTICS SYSTEMS
Pipeline – George Dikeman
Nederland – Brian Hudgins
Butane – Laura Olah
Energy Transfer – Luke Fletcher
ASSET OVERVIEW
CRUDE OIL PIPELINE SYSTEM

Approximately 4,900 miles of crude oil trunk lines located in
the Southwest and Midwest U.S.
Approximately 500 miles of gathering lines

60.3% interest in West Texas Gulf Pipeline, a 580-mile
crude oil pipeline

91.0% interest in Mid-Valley Pipeline, a 990-mile crude oil
pipeline

37.0% undivided interest in Mesa Pipeline
REFINED PRODUCTS PIPELINE SYSTEM


Refined products pipeline system (approximately 2,500
miles), located in the Northeast, Midwest and Southwest
U.S.
Equity interest in four product pipelines
Explorer (9.4%)
West Shore (17.1%)
Wolverine (31.5%)
Yellowstone (14.0%)

83.8% interest in Inland Pipeline, a 350-mile refined
products pipeline system
MAJOR ORGANIC PROJECTS IN 2012

Successful Open Seasons
West Texas Crude expansion (crude oil)
Permian Express Phase I (crude oil)
Allegheny Access (refined products)
Mariner West (natural gas liquids)
Mariner East (natural gas liquids)

Actively developing Permian Express Phase II (crude oil)

Continued development and expansion at Eagle Point Terminal
NEDERLAND OVERVIEW
BRIAN HUDGINS
TERMINAL SUPERVISOR
NEDERLAND MARINE TERMINAL






68 Crude Storage Tanks
70 Lube Storage Tanks
Provide Bunker Service
Railcar offload Facility
5 Ship Docks
3 Barge Docks
CRUDE STORAGE CAPACITY
• 68 Crude Oil
Storage Tanks
 Total Shell Capacity
~21.6Mbbls.
 Max Fill Capacity
~18.1Mbbls.
RAILCAR FACILITY
 Able to receive a 112 railcar unit train
 Able to offload unit train in ~ 4 days
RAILCAR CAPABILITIES
 30 Crude unloading
spots.
 6 positive
displacement pumps
rated at 1,050 bbl/hr
each.
 4.5 hr pump time for
30 cars.
 Daily switches via KCS.
Terminal Distribution System—Currently 18 Connections
Keystone
To Longview
Mid-Valley PL to Ohio,
Red River PL to Cushing,
McMurry PL to Tyler
From Patoka IL.
ETX 10”
Canadian Crude
To Wortham / Corsicana
1.Sunoco PL to Ringold and Wichita Falls
Basin to Cushing
To Longview
2.Mid-Valley PL to Ohio Red river PL to
Cushing, McMurry PL to Tyler
Midland
SXL 12”
To Big Springs
SXL 8”
Orange 6”
WTG 26”
Pipeline
24”
SUNOCO
NEDERLAND
TERMINAL
10"
BP26”
East TX
Production
Citgo 20”
XOM 20”
SXL
Proposed
Lake Charles
Exxon Mobil
Beaumont
5 Ship Docks
3BargeDocks
DOE 42” to W. Hackberry
32”
Shell 22”
20”
Shell PL
East Houston
Calcasieu
Lake Charles
Citgo
Lake Charles
Ships/Barges
Texas City
Refineries
Shell 16”
Conoco Phillips
Lake Charles
Shell 20”
OTI
Houston
Valero
Lyondell
Houston
Petrobras
OTI 24”
ExxonMobil
Baytown
Shell
Deer Park
SPR
Big Hill
Lucas
4-Valero 10”
DOE 36”
Total Pt Arthur
Valero
Port Arthur
OCS
Motiva Pt
Arthur
Receipts
Deliveries
Bi-Directional
FIVE SHIP DOCKS
&
THREE BARGE DOCKS
BUTANE OVERVIEW
LAURA OLAH
BUSINESS DEVELOPMENT
Butane Blending Program
SXL owns and operates the only
U.S. patented Automated
Butane Blending System
WHY BLEND?
Butane Blend
Opportunity
Direct to rack or
pipeline
Maximizing Profitability
Gasoline
Volatility
Specifications
15.5
15.0
Geographically
diverse
Multiple seasonal
changes
Pipeline vs Retail
Specifications
Many products
Complex refining
Long-haul pipelines
TN RVP SPEC
14.0
Product In Tank
13.5
13.0
12.5
RVP
Distribution
System
14.5
12.0
11.5
11.0
10.5
10.0
9.5
9.0
8.5
8.0
1/1
2/1
3/1
4/1
5/1
6/1 7/1 8/1
Blend period
9/1
10/1 11/1 12/1
Customer
Service
Proprietary
Blending
Systems
Standard &
Customized
Design
Full, Turn-Key Program
Regulatory
Compliance
Butane
Supply
Financial
Options
Tailored Design
Complex design and permitting
Designed for Performance
Commitment to safety & reliability
Commitment to Readiness
Training and Commencement
Butane Supply
Certification & Compliance
Operational Excellence
Focus on optimization
Daily Report
Communication & Reporting
Dynamic Analysis, Trending
ENERGY TRANSFER OVERVIEW
LUKE FLETCHER
VP, COMMERCIAL OPERATIONS
THE CHANGING ENVIRONMENT
OF PIPELINE SAFETY REGULATION
LARRY SHELTON
MANAGER, ASSET INTEGRITY
BACKGROUND
 High Profile Events
 NTSB/Congress Criticism of PHMSA
 Secretary LaHood’s Call to Action
 Pipeline Safety, Regulatory Certainty, and
Jobs Creation Act of 2011
 Performance-Based Regulations
 Mixed Results in 10 Years of IMP Rule
SO, WHAT’S COMING? ……
ASSET INTEGRITY
 Low Stress Phase II Implementation
 Gathering
 New Repair Requirements
 Expand Requirements beyond HCAs
 More ILI Tools
 Non-Pipeline Facilities
 “Fitness for Service”
DESIGN & CONSTRUCTION
 Mill QC
 Construction Inspections
 Advance Notice
 Cost Recovery
 Operator Qualification
DATA REQUIREMENTS
 Records Verification
 ILI as an As-Built Verification Tool
 Sophisticated Data Integration
 More Data Layers for Risk Modeling
 Risk Quantification (vs. Qualification)
DAMAGE PREVENTION
 Evaluate State One Call Programs
 Face-to-Face with Emergency Responders
 Train & Drill with Emergency Responders
 NTSB Putting Onus on Agencies to Seek Out
Training from Operators
 Closer Liaison with 911
REGULATORS
 More PHMSA Inspectors
 More State Inspectors
 More Inspections
 Broader Interpretations
 Stricter Enforcement
 Higher Penaltie$
BOTTOM LINE
 Improved Technology
 More Repairs & MOP Restrictions
 Higher Expectations
 Greater Scrutiny
 Tougher Penalties
 Smoother Sailing
Download