welcome to our 2012 customer conference where we value our customers!

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WELCOME TO OUR 2012 CUSTOMER CONFERENCE WHERE WE VALUE OUR CUSTOMERS!

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Page 1: WELCOME TO OUR 2012 CUSTOMER CONFERENCE WHERE WE VALUE OUR CUSTOMERS!

WELCOMETO OUR

2012 CUSTOMER CONFERENCE

WHERE WE VALUEOUR CUSTOMERS!

Page 2: WELCOME TO OUR 2012 CUSTOMER CONFERENCE WHERE WE VALUE OUR CUSTOMERS!

OPENING REMARKS

MIKE SCHMIDTMANAGER, PRODUCT MOVEMENT

Page 3: WELCOME TO OUR 2012 CUSTOMER CONFERENCE WHERE WE VALUE OUR CUSTOMERS!

SXL LEGAL DISCLAIMERStatements 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 anduncertainties that may affect our business and cause actual results to differ materiallyfrom those discussed in this presentation. Such risks and uncertainties includeeconomic, business, competitive and/or regulatory factors affecting our business, aswell as uncertainties related to the outcomes of pending or future litigation. SunocoLogistics Partners L.P. has included in its Annual Report on Form 10-K for the yearended December 31, 2011 cautionary language identifying important factors (thoughnot necessarily all such factors) that could cause future outcomes to differ materiallyfrom those set forth in the forward-looking statements. For more information aboutthese 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.This presentation includes certain non-GAAP financial measures intended tosupplement, not substitute for, comparable GAAP measures. Reconciliations of non-GAAP financial measures to GAAP financial measures are provided in the appendixto this presentation. You should consider carefully the comparable GAAP measuresand the reconciliations to those measures provided in this presentation.

Page 4: WELCOME TO OUR 2012 CUSTOMER CONFERENCE WHERE WE VALUE OUR CUSTOMERS!

OVERVIEW OFSUNOCO LOGISTICS SYSTEMS

Pipeline – George DikemanNederland – Brian Hudgins

Butane – Laura OlahEnergy Transfer – Luke Fletcher

Page 6: WELCOME TO OUR 2012 CUSTOMER CONFERENCE WHERE WE VALUE OUR CUSTOMERS!

CRUDE OIL PIPELINE SYSTEMg Approximately 4,900 miles of crude oil trunk lines located in

the Southwest and Midwest U.S.

0 Approximately 500 miles of gathering lines

g 60.3% interest in West Texas Gulf Pipeline, a 580-mile crude oil pipeline

g 91.0% interest in Mid-Valley Pipeline, a 990-mile crude oil pipeline

g 37.0% undivided interest in Mesa Pipeline

Page 7: WELCOME TO OUR 2012 CUSTOMER CONFERENCE WHERE WE VALUE OUR CUSTOMERS!

REFINED PRODUCTS PIPELINE SYSTEM Refined products pipeline system (approximately 2,500

miles), located in the Northeast, Midwest and Southwest U.S.

Equity interest in four product pipelines

0 Explorer (9.4%)0 West Shore (17.1%)0 Wolverine (31.5%)0 Yellowstone (14.0%)

83.8% interest in Inland Pipeline, a 350-mile refined products pipeline system

Page 8: WELCOME TO OUR 2012 CUSTOMER CONFERENCE WHERE WE VALUE OUR CUSTOMERS!

MAJOR ORGANIC PROJECTS IN 2012g Successful Open Seasons

0 West Texas Crude expansion (crude oil)

0 Permian Express Phase I (crude oil)

0 Allegheny Access (refined products)

0 Mariner West (natural gas liquids)

0 Mariner East (natural gas liquids)

g Actively developing Permian Express Phase II (crude oil)

g Continued development and expansion at Eagle Point Terminal

Page 9: WELCOME TO OUR 2012 CUSTOMER CONFERENCE WHERE WE VALUE OUR CUSTOMERS!

NEDERLAND OVERVIEWBRIAN HUDGINS

TERMINAL SUPERVISOR

Page 10: WELCOME TO OUR 2012 CUSTOMER CONFERENCE WHERE WE VALUE OUR CUSTOMERS!

NEDERLAND MARINE TERMINAL

68 Crude Storage Tanks 70 Lube Storage Tanks Provide Bunker Service Railcar offload Facility 5 Ship Docks 3 Barge Docks

Page 11: WELCOME TO OUR 2012 CUSTOMER CONFERENCE WHERE WE VALUE OUR CUSTOMERS!

CRUDE STORAGE CAPACITY

• 68 Crude Oil Storage Tanks

Total Shell Capacity ~21.6Mbbls.

Max Fill Capacity ~18.1Mbbls.

Page 12: WELCOME TO OUR 2012 CUSTOMER CONFERENCE WHERE WE VALUE OUR CUSTOMERS!

RAILCAR FACILITY

Able to receive a 112 railcar unit train Able to offload unit train in ~ 4 days

Page 13: WELCOME TO OUR 2012 CUSTOMER CONFERENCE WHERE WE VALUE OUR CUSTOMERS!

RAILCAR CAPABILITIES 30 Crude unloading

spots. 6 positive

displacement pumps rated at 1,050 bbl/hr each.

4.5 hr pump time for 30 cars.

Daily switches via KCS.

Page 14: WELCOME TO OUR 2012 CUSTOMER CONFERENCE WHERE WE VALUE OUR CUSTOMERS!

SUNOCONEDERLANDTERMINAL

Midland

To Big Springs

SXL 10"

From Patoka IL.

Canadian Crude

To Longview Mid-Valley PL to Ohio, Red River PL to Cushing, McMurry PL to Tyler

ETX

10”

To Wortham / Corsicana 1.Sunoco PL to Ringold and Wichita Falls Basin to Cushing To Longview 2.Mid-Valley PL to Ohio Red river PL to Cushing, McMurry PL to Tyler

WTG

26”

Conoco Phillips Lake Charles

Citgo Lake Charles24” Exxon Mobil

Beaumont

5 Ship Docks 3BargeDocks

DOE 42” to W. Hackberry

Shell 22”

Total Pt Arthur

SPR Big Hill

20”

Motiva Pt ArthurValero

Port Arthur

DO

E 3

6” Lucas

32”

4-V

aler

o 10

ExxonMobil Baytown

Shell 20”

OTI Houston

OTI 24”

Shell Deer Park

Lyondell Houston

Shell PL East Houston

Shell 16”

BP26”

Texas City Refineries

Terminal Distribution System—Currently 18 Connections

OCS

SXL

12”

XOM 20”

Ships/Barges

SXL 8” Orange 6”

East TX Production

Proposed Lake Charles

Valero

Petrobras

Citgo 20” Calcasieu Lake Charles

Receipts

Deliveries

Bi-Directional

Keystone

Pipeline

Page 15: WELCOME TO OUR 2012 CUSTOMER CONFERENCE WHERE WE VALUE OUR CUSTOMERS!

FIVE SHIP DOCKS &

THREE BARGE DOCKS

Page 16: WELCOME TO OUR 2012 CUSTOMER CONFERENCE WHERE WE VALUE OUR CUSTOMERS!

BUTANE OVERVIEWLAURA OLAH

BUSINESS DEVELOPMENT

Page 17: WELCOME TO OUR 2012 CUSTOMER CONFERENCE WHERE WE VALUE OUR CUSTOMERS!

Butane Blending Program

SXL owns and operates the only U.S. patented Automated Butane Blending System

Page 18: WELCOME TO OUR 2012 CUSTOMER CONFERENCE WHERE WE VALUE OUR CUSTOMERS!

WHY BLEND?

Distribution System Many products

Complex refining

Long-haul pipelines

Gasoline Volatility SpecificationsGeographically diverse

Multiple seasonal changes

Pipeline vs Retail Specifications

1/1

1/19 2/

62/

243/

14 4/1

4/19 5/

75/

256/

126/

307/

18 8/5

8/23

9/10

9/28

10/1

611

/311

/21

12/9

12/2

78.0

8.5

9.0

9.5

10.0

10.5

11.0

11.5

12.0

12.5

13.0

13.5

14.0

14.5

15.0

15.5

TN RVP SPEC Product In Tank

Blend period

RV

P

Butane Blend OpportunityDirect to rack or pipelineMaximizing Profitability

Page 19: WELCOME TO OUR 2012 CUSTOMER CONFERENCE WHERE WE VALUE OUR CUSTOMERS!

Standard & Customized

Design

Financial Options

Butane Supply

Regulatory Compliance

Proprietary Blending Systems

Customer Service

Full, Turn-Key Program

Page 20: WELCOME TO OUR 2012 CUSTOMER CONFERENCE WHERE WE VALUE OUR CUSTOMERS!

Tailored Design

Complex design and permitting

Page 21: WELCOME TO OUR 2012 CUSTOMER CONFERENCE WHERE WE VALUE OUR CUSTOMERS!

Designed for Performance

Commitment to safety & reliability

Page 22: WELCOME TO OUR 2012 CUSTOMER CONFERENCE WHERE WE VALUE OUR CUSTOMERS!

Commitment to Readiness

Training and Commencement

Page 23: WELCOME TO OUR 2012 CUSTOMER CONFERENCE WHERE WE VALUE OUR CUSTOMERS!

Butane Supply

Certification & Compliance

Page 24: WELCOME TO OUR 2012 CUSTOMER CONFERENCE WHERE WE VALUE OUR CUSTOMERS!

Operational Excellence

Focus on optimization

Page 25: WELCOME TO OUR 2012 CUSTOMER CONFERENCE WHERE WE VALUE OUR CUSTOMERS!

Communication & Reporting

Dynamic Analysis, Trending

Daily Report

Page 26: WELCOME TO OUR 2012 CUSTOMER CONFERENCE WHERE WE VALUE OUR CUSTOMERS!

ENERGY TRANSFER OVERVIEWLUKE FLETCHER

VP, COMMERCIAL OPERATIONS

Page 27: WELCOME TO OUR 2012 CUSTOMER CONFERENCE WHERE WE VALUE OUR CUSTOMERS!

THE CHANGING ENVIRONMENT OF PIPELINE SAFETY REGULATION

LARRY SHELTONMANAGER, ASSET INTEGRITY

Page 28: WELCOME TO OUR 2012 CUSTOMER CONFERENCE WHERE WE VALUE OUR CUSTOMERS!
Page 29: WELCOME TO OUR 2012 CUSTOMER CONFERENCE WHERE WE VALUE OUR CUSTOMERS!

BACKGROUND

High Profile Events

NTSB/Congress Criticism of PHMSA

Secretary LaHood’s Call to Action

Pipeline Safety, Regulatory Certainty, and

Jobs Creation Act of 2011

Performance-Based Regulations

Mixed Results in 10 Years of IMP Rule

Page 30: WELCOME TO OUR 2012 CUSTOMER CONFERENCE WHERE WE VALUE OUR CUSTOMERS!
Page 31: WELCOME TO OUR 2012 CUSTOMER CONFERENCE WHERE WE VALUE OUR CUSTOMERS!

SO, WHAT’S COMING? ……

Page 32: WELCOME TO OUR 2012 CUSTOMER CONFERENCE WHERE WE VALUE OUR CUSTOMERS!

ASSET INTEGRITY

Low Stress Phase II Implementation

Gathering

New Repair Requirements

Expand Requirements beyond HCAs

More ILI Tools

Non-Pipeline Facilities

“Fitness for Service”

Page 33: WELCOME TO OUR 2012 CUSTOMER CONFERENCE WHERE WE VALUE OUR CUSTOMERS!

DESIGN & CONSTRUCTION

Mill QC

Construction Inspections Advance Notice

Cost Recovery

Operator Qualification

Page 34: WELCOME TO OUR 2012 CUSTOMER CONFERENCE WHERE WE VALUE OUR CUSTOMERS!

DATA REQUIREMENTS

Records Verification

ILI as an As-Built Verification Tool

Sophisticated Data Integration

More Data Layers for Risk Modeling

Risk Quantification (vs. Qualification)

Page 35: WELCOME TO OUR 2012 CUSTOMER CONFERENCE WHERE WE VALUE OUR CUSTOMERS!

DAMAGE PREVENTION

Evaluate State One Call Programs

Face-to-Face with Emergency Responders

Train & Drill with Emergency Responders

NTSB Putting Onus on Agencies to Seek Out

Training from Operators

Closer Liaison with 911

Page 36: WELCOME TO OUR 2012 CUSTOMER CONFERENCE WHERE WE VALUE OUR CUSTOMERS!

REGULATORS

More PHMSA Inspectors

More State Inspectors

More Inspections

Broader Interpretations

Stricter Enforcement

Higher Penaltie$

Page 37: WELCOME TO OUR 2012 CUSTOMER CONFERENCE WHERE WE VALUE OUR CUSTOMERS!

BOTTOM LINE

Improved Technology

More Repairs & MOP Restrictions

Higher Expectations

Greater Scrutiny

Tougher Penalties

Smoother Sailing

Page 38: WELCOME TO OUR 2012 CUSTOMER CONFERENCE WHERE WE VALUE OUR CUSTOMERS!