Sunoco Logistics moving ahead with Texas pipeline project

Sunoco Logistics Partners L.P. on Monday announced it is moving ahead with a pipeline project to export natural gas liquids like propane and butane from its ocean terminal in Nederland, Texas, after receiving commitments from shippers.

The Mariner South project would carry the fuels in an existing Sunoco Logistics pipeline to Nederland from Mont Belvieu, Texas, where Lone Star NGL L.L.C. operates a storage and processing complex. Lone Star is a joint venture involving Energy Transfer Partners L.P., which is also the general partner of Sunoco Logistics.

Producers of natural gas liquids are scrambling to find markets for the fuels, which are produced in abundance as part of the shale-gas boom. Sunoco Logistics is also building a project called Mariner East to export Marcellus Shale liquids from its Marcus Hook terminal.