Sunoco Pipeline L.P. will commence an open season for its Permian Express 2 Pipeline. The pipeline will provide additional crude oil takeaway capacity for the growing production in the Permian Basin. The pipeline will originate at
multiple locations in West Texas: Midland, Garden City and Colorado City. Permian Express 2 will have access to multiple SXL and third-party pipelines to provide producers the ability to reach various markets and refineries on the Gulf Coast and in the Midcontinent.
“We are pleased to launch the Open Season for Permian Express 2,” Michael J. Hennigan, president and chief executive said in a release. “We remain bullish on the Permian Basin’s growth. Crude oil production in this basin is projected to increase annually by approximately 200,000 barrels (bbl.) per day according to latest industry and consultant estimates. We areproceeding with the open season to determine market interest to develop this project ….”
Sunco will construct 300-to-400 miles of pipeline pending customer interest for various locations. The Permian Express 2 pipeline is anticipated to have an initial capacity of approximately 200,000 bbl. per day and is expected to be operational in the second quarter of 2015.
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