November 15, 2012 [OPIS] - Sunoco Logistics has completed its storage capacity expansion project at its Eagle Point terminal in New Jersey, boosting the total capacity at the terminal to 5 million bbl as planned from 3 million bbl earlier this year, trading sources in New York Harbor told OPIS on Wednesday.
Sunoco Logistics had previously expected the full 5-million-bbl capacity at Eagle Point to be operational by the end of 2012. Sunoco confirmed in March its plans to expand refined products storage capacity at its Eagle Point oil products terminal in order to ensure reliability of supply and to quell concerns about possible supply disruptions in the Northeast as a result of reduced refining capacity.
Sunoco Logistics’ Eagle Point terminal had only 3 million bbl of active storage prior to the latest expansion. The bulk of the total 5-million-bbl capacity is for clean oil products storage. About 60% of the terminal’s storage capacity is allocated to clean products with the remainder used for dirty products, industry sources said.
Sunoco Inc. was a major tenant at the Eagle Point terminal as it exported diesel produced at its 335,000-b/d Philadelphia refinery from that location. The now-idled Marcus Hook refinery does not produce ultra-low-sulfur diesel (ULSD). Philadelphia Energy Solutions is now the new owner of the Philadelphia refinery, and it continues to export distillates from Eagle Point.
Besides PES, the Eagle Point terminal is open to third-party tenants. Sunoco said that the terminal has improved the ability to handle large vessels at its deep water marine docks, which can handle vessels of 600,000-bbl capacity (Aframax) and 1-million-bbl capacity (Suezmax).
The terminal has also upgraded its ability to handle railcar off-loading. Sunoco Logistics has installed pipeline connectivity between Eagle Point and the Colonial Pipeline, Laurel Pipeline and Harbor Pipeline systems, which supply key Northeast markets.
The company has developed plans to reverse pipelines to feed Philadelphia’s high-volume Belmont Terminal, which is an important regional supply point for truck loading and deliveries. Eagle Point, with its vast storage capabilities and multiple pipeline connections, can supply a full slate of refined products to Pennsylvania, New Jersey and New York markets.
The terminal can also send outbound shipments to Baltimore and New England ports via marine vessels. Eagle Point is also connected to a truck rack which supplies gasoline and ULSD to local markets.
In addition, Marcus Hook can receive products via the Delaware River, as well as local refineries, and distribute them through operating pipelines to various markets.
