December 19, 2011 [OPIS] - Sunoco Logistics is expected to have at least 500,000 to 1 million bbl of new clean products storage capacity at its Eagle Point, N.J., oil terminal ready for operation around the end of the first quarter or early second quarter, industry sources in the New York Harbor told OPIS.
This could represent up to a 20% increase in total storage capacity. The terminal could raise its capacity further after the completion of the first quarter expansion. The Eagle Point tank farm consists of approximately 5 million barrels of active storage for clean and dirty products. Dirty products include crude and vacuum gas oil.
The storage capacity expansion is in line with expectations of a higher import flow into the Mid-Atlantic region next summer, following the idling of its ConocoPhillips’ 185,000-b/d Trainer refinery and Sunoco’s 178,000-b/d Marcus Hook plant. Sunoco Inc. is a major tenant at Eagle Point terminal as it continues to export diesel produced at its 335,000-b/d Philadelphia refinery from that location.
The now idled Marcus Hook refinery does not produce ULSD. Besides Sunoco Inc., the Eagle Point terminal is also open to third-party tenants. The expanded capacity could draw more third-party tenants to Eagle Point. Eagle Point terminal has about 60% of its storage capacity allocated to clean products and 40% to dirty. Sunoco Logistics bought from Sunoco Inc. the Eagle Point tank farm and related assets located at Westvilled, N.J., in June 2011 for $100 million.
“Together with our existing pipeline connectivity, dock space, and refined products rack at Eagle Point, the tank farm establishes this location as a major terminal operation on the East Coast with import/export capabilities and room to grow,” said Michael J. Hennigan, president and chief operating officer of Sunoco Logistics Partners L.P. said during the announcement of the Eagle Point tank farm purchase in June.
