Sunoco Logistics, Exxon Mobil to Combine Pipeline Assets in Strategic Joint Venture

Sunoco Logistics Partners is forming a joint venture with Exxon Mobil, which will give more strategic assets to Sunoco near the Dakota Access Pipeline and also help increase its footprint in West Texas.

In the deal, called Permian Express Partners, both companies will contribute assets, and Sunoco will take a stake of 85 percent while Exxon takes the remaining 15 percent.

Sunoco is contributing to the deal its Permian Express 1 and 2 and its Permian Longview and Louisiana Access pipelines. Exxon’s contributions include its Longview and Louisiana Pegasus pipelines, Hawking gathering system, an idle pipeline in Oklahoma, and its terminal in Patoka, Illinois.

This joint venture expands Sunoco’s footprint in the Permian Basin, a hot spot for exploration and production companies as well as midstream operators.

Owning a majority stake in Exxon’s terminal in Pakota, Illinois is an advantage for Sunoco because the terminal connects to the Dakota Access Pipeline, which Sunoco will operate once the pipeline is complete.

Source:
Reuters