Energy Transfer and Sunoco recently formed a joint venture combining their respective crude oil and produced water gathering assets in the Permian Basin.
Energy Transfer will serve as the JV operator and contribute its Permian crude oil and produced water gathering assets and operations. Sunoco will contribute all its Permian crude oil gathering assets and operations to the joint venture. Energy Transfer’s long-haul crude pipeline network that transports crude oil out of the Permian Basin to Nederland, Houston, and Cushing, Oklahoma, is excluded from the venture, the companies reported.
The JV will operate more than 5,000 miles of crude oil and water gathering pipelines with crude oil storage capacity in excess of 11 million barrels.
Energy Transfer will hold a 67.5% interest in the JV, with Sunoco holding a 32.5% interest.
The formation of the JV was effective July 1 and is expected to be immediately accretive to distributable cash flow per LP unit for both Energy Transfer and Sunoco.
