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WEST TEXAS DIESEL PROJECT OPEN SEASON ANNOUNCEMENT

Background

Energy Transfer Partners, L.P. is pleased to announce that its subsidiary hereby launches a binding open season ("Open Season") to solicit shipper commitments for transportation service of diesel fuel from Hebert, TX to the Midland, TX area. Subject to the results of this Open Season and receipt of all necessary permits and approvals, the proposed pipeline is expected to have an initial capacity of 30,000 barrels per day and is anticipated to be operational in the third quarter of 2020. Through this Open Season process, potential shippers will have the opportunity to make volume commitments for firm transportation service from existing Sunoco Pipeline L.P. assets in Hebert, TX to a newly constructed terminal in the Midland area ("Priority Service Shippers").

 

Highlights

  • The volume commitments of Priority Service Shippers would not be subject to prorationing to accommodate the volumes of uncommitted shippers under ordinary operating conditions, subject to applicable laws and regulations.

  • Priority Service Shippers would have the flexibility of selecting a five-, seven-, or ten-year term from the commencement of operation of the proposed pipeline.

  • Priority Service Shippers would not be exposed to construction cost risk on their volume commitments.

  • It is anticipated the proposed pipeline would be in service in the third quarter of 2020.

  • In certain circumstances, Priority Service Shippers would be entitled to a credit against their volume commitments when the proposed pipeline cannot transport the Priority Service Shippers’ volume commitments.

Open Season Process

The Open Season will commence at 8:00 A.M. (Eastern) on April 13, 2018. The Open Season will run for 60 days, ending at 5:00 P.M. (Eastern) on June 12, 2018.

Bona fide potential shippers that desire to receive copies of the Open Season documents are required to execute a confidentiality agreement and may direct their requests for a confidentiality agreement to the following e-mail address: dlWTXD@energytransfer.com

To execute the confidentiality agreement, a potential shipper must:

  • a) Insert its name, jurisdiction of incorporation or formation, email address, and contact information.

  • b) Submit an executed copy via email to: dlWTXD@energytransfer.com

A confidentiality agreement that has been altered or amended in any way by a potential shipper, other than by the insertion of the shipper’s name, jurisdiction of incorporation or formation, e-mail address and contact information, may not be accepted, in which case the Open Season documents will not be provided to that potential shipper.

Inquiries about the Open Season should be directed to: dlWTXD@energytransfer.com


PDF Version:  West Texas Diesel Project Open Season Notification