New York May 6 Sunoco Logistics Partners LP
said on Monday it had received sufficient binding
commitments to ship propane and butane on its proposed Mariner
South pipeline in Texas to proceed with the project.
The pipeline, which will have an initial capacity of 200,000
barrels per day and is expected to start shipping in the first
quarter of 2015, will run from a storage complex run by Lone
Star in Mont Belvieu to Sunoco's terminal in Nederland.
"In addition to export grade propane and butane, the
pipeline will be available for other natural gas liquids and
petroleum products depending on shipper interest," Sunoco said
in a statement, adding its capacity could be scaled up.
Lone Star NGL LCC is a joint venture between Energy Transfer
Partners LP and Regency Energy Partners LP. It
operates 47 million barrels of storage capacity at Mont Belvieu
as well as natural gas liquids pipelines.
Production of propane, a by-product of oil refining and
natural gas processing, has surged together with the U.S. shale
oil and gas boom. Exports of the liquefied petroleum gas have
quadrupled in the past five years, according to U.S. Energy
Information Administration data.