SunVit Pipeline LLC, a newly formed joint venture between Vitol Inc and Sunoco Pipeline L.P. is set to build a pipeline to connect the Midland Texas market with Sunoco’s recently announced Permian Express 2 pipeline. SunVit will provide enhanced logistical flexibility for crude oil exiting the Midland, Texas market. The 20” crude oil pipeline will run from Midland, Texas, to Garden City, Texas, where it will connect to Sunoco’s Permian Express 2 pipeline, as well as other existing Sunoco pipelines, enabling it to access U.S. Gulf Coast refineries.
SunVit’s primary operating assets, including an anticipated 500,000 barrels of operating storage, will be constructed adjacent to Vitol’s existing Midland crude oil terminal and will have receipt and delivery connectivity with Vitol’s tanks. The SunVit pipeline will operate under a joint tariff as part of Permian Express 2 and is expected to commence operating in 2015.
“SunVit represents an opportunity to work with a strong partner in servicing the growth in West Texas oil production. It is also an important new step in expanding Vitol’s domestic crude oil business,” commented Mike Loya, President of Vitol, Inc. “We look forwarding to growing SunVit with Sunoco to facilitate our customers’ increasing need to get their production to market efficiently.”
Vitol’s West Texas assets include a crude oil terminal with over one million barrels of storage capacity, multiple truck unloading locations and over 100 miles of pipeline. Vitol USA provides crude oil marketing services in the Permian, offshore Gulf of Mexico and all of the major shale basins in the U.S. Sunoco and Vitol will each have a 50% ownership in SunVit (Vitol).