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Sunoco Logistics Mariner Systems & Marcus Hook Industrial Complex June 2016
Forward-Looking Statements 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, 2015 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.
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NGL Markets 2016 - 2021
Source: RBN Energy LLC
Mariner Systems & Marcus Hook Industrial Complex
EVERYBODY MAKES THE SAME STUFF… – NGL’s, Petroleum Products, Olefins and Polyolefins are all
manufactured to similar specifications. IT’S ALL ABOUT THE LOGISTICS.
BRINGING PRODUCTION TO MARKET COMPETIVELY IS THE
KEY SXL’s MARINER PIPELINES AND MARCUS HOOK INDUSTRIAL
COMPLEX PROVIDE A COMPETITVE SOLUTION.
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Mariner Franchise: 4 Successful Open Seasons
Mariner West Ethane from Houston to Sarnia
50,000 Bbl./day ethane
Mariner South Propane / Butane from Mont Belvieu to Nederland
120,000 Bbl./day capacity propane & butane
Mariner East 1 Ethane / Propane from Houston to Marcus Hook
72,000 Bbl./day ethane propane mix
Mariner East 2 NGLs from Shales to Marcus Hook 275,000 Bbl./day propane & butane
Mariner East 1 & 2
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Connecting to 4 Fractionator Origin Locations in the Basin
275,000 B/D Initial Capacity 345,000 B/D including ME 1
World-Class NGL Facility at Marcus Hook Industrial Complex
Mariner East 2 Ethane Expansion
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Mariner East 2 Ethane Expansion: Inititialy use existing 12” ME1 line from Houston to Delmont Build new 16” line from Delmont to Montello Use existing infrastructure from Montello to MHIC
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Mariner East Overview
$ 3 Billion project in Pennsylvania The takeaway solution for the Marcellus / Utica liquids Most efficient export and processing option for one of the most reliable
and abundant NGL resource play in the US
Connected to a World-Class Northeast NGL Hub and Chemical Processing facility at Marcus Hook Industrial Complex (former Sunoco Refinery).
Repurposed as an NGL hub to receive Marcellus/Utica shale natural gas liquids (NGLs) for distribution and further processing to access international, local and regional markets. Phased approach: Mariner East is scalable
– Project will be expanded as production/ consumption needs grow – Combined ME1, ME2 and ME2X = 745 MBbl./day and scalable.
Marcus Hook Industrial Complex 800 acre facility: Former Sunoco Refinery 5 Million Bbls/ NGL storage at ME2 completion, in addition to
underground granite caverns ~2MM Bbl. capacity. 5 MMBBL of aboveground storage for crude oil and products 4 docks with deep water draft accommodating fully laden VLGC’s
Ample utilities available for power, air, steam, flare, fuel and water
systems for development of Olefin and Polyolefin processing. Rail receipts for Butane, Propane and Natural Gasoline = 30MBbl./day - Additional rail on premises for olefins and polyolefin outbound - Room to build significant additional rail capacity Truck inbound/ outbound
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Marcus Hook Terminal Build-Out
Marcus Hook Industrial Complex
Mariner Infrastructure
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Marcus Hook Docks
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4 Ship Docks VLGC Capable
2A-Ethane 3B
3A-Propane Butane
1A- Ethane Propane Butane
3C-Propane Butane
Port of Houston
Port of Philadelphia
Channel project width 400 feet (122m) 800 feet (244m) General Port Traffic (ships and tugs)
163,866 4,440
Vessel delays (hours) 685 hours 0 Fog Delays (hours) 385 hours 0 Channel Closures (hours) 595 hours 0 Hurricane events Days of closure, up to
6 days wait for direct hits
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Houston Ship Channel v. Port of Philadelphia
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SXL Delaware River Expertise
Managed 800+MBPD of marine feedstock
Thousands of marine
movements yearly Excellent Coast Guard and
Pilots relationship Area refineries dependent
upon marine supplied feedstock
Knowledge and experience
with marine LPG movements
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Marcus Hook
Projected Shipping Rates (¢/Gal)
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Semi Ref VLGC Destination (140 MBBLS) (550 MBBLS) Europe 10.5 4.3 Far East NA 13.5
Key Points Widening of Panama Canal in 2016 Overbuilding of VLGCs Ability to load split cargos will be competitive advantage
793 KMTA PP
370 KMTA PP
1,148 KMTA PP
2300 KMTA PP Market within 600 miles
Mariner East NGL Economic Advantages Distance from Marcellus / Utica – pipeline cost
Very competitive export cost vs. USGC alternative
No vessel delays due to port congestion and minimal weather delays.
World class export operation with 5 MM Bbls, storage, redundant refrigeration and dock capacity capable of loading VLGC’s at 25,000 Bbl./Hr. Access to obtain the international arbitrage
– Arb expected to widen as crude price increases and naphtha becomes more expensive relative to NGL’s.
Access to distribution for propane and butane in the premium NE
fuels markets (BTU’s & gasoline blending). 17
Marcus Hook Chemical Processing Advantages
More than an ideal NGL export location. MHIC provides utilities and operational expertise for manufacturing and distribution to local and regional markets for NGL’s, Olefins and Poly-Olefins.
300 miles from abundant, advantaged NGL supply and
proximate to large Northeast US polyolefin demand Manufacturing potential- PDH, BDH, Polyolefin production,
Alkylate. Experienced process operators. Ample rail car storage & switching and serviced by both
CSX and NS