By BEN LEFEBVRE
Sunoco Logistics Partners said Wednesday it is seeking
customers for a proposed pipeline that would transport crude
oil from West Texas to the Gulf of Mexico, the third such
pipeline the company has proposed since February.
The 40,000 bpd pipeline would bring the crude oil to
Nederland, Texas, 90 miles east of Houston and near the Gulf of
The pipeline would give fuel producers in the Houston refining hub greater access to West
Texas Intermediate, or WTI, crude oil, currently at a $17
discount to Brent crude oil amid a supply bottleneck that is
The pipeline should be operational by 2013, the company
said. The project is a partnership with Mobil
Pipeline Co., a unit of ExxonMobil.
Sunoco Logistics didn't disclose the expected cost of the project. A Sunoco Logistics
spokesman wasn't immediately available to comment.
In February, Sunoco Logistics disclosed two other pipeline
projects to bring West Texas crude
oil to Gulf Coast. A 40,000 bpd pipeline would connect to
Houston by April 2012 and a 30,000 bpd pipeline to transport
oil to Longview, Texas, by January 2013.
Sunoco owns the general partner interest of Sunoco
Dow Jones Newswires