Sunoco Logistics Partners has started seeking customers for its West Texas pipeline reversal plan, which would carry surging oil production in the Permian Basin to Gulf  Coast refineries, the company announced.

The Philadelphia-based pipeline company plans to reverse a line that currently flows from Wortham to Wichita   Falls. After the reversal, expected to take six to nine months, a new eastward-flowing pipe will connect to an existing Wortham-to-Nederland line.

The open season, when customers to sign binding contracts to use the pipeline, started Monday and will run through July 24, according to the company.

The Permian Express pipeline will initially transport 90,000 barrels per day from Wichita Falls to Nederland, a span of about 450 miles. Within 12 to 18 months, the line will run at a full capacity of 150,000 barrels per day.

The company said it could further expand the Permian Express to 350,000 barrels per day and extend further east into Louisiana. If enacted, that project would be operational in late 2014, according to Sunoco Logistics.

“With the use of pipe of pipe already in the ground, Permian Express Phase I offers Texas producers and Gulf Coast refiners a fast and cost-efficient solution with tremendous operational flexibility,” said Sunoco Logistics President and CEO Michael J. Hennigan in a written statement. “Our latests crude project demonstrates once again that our assets are attractively positioned to deliverPermian  Basin crude oil to markets sought by producers and refiners.”


Sourced from June 26th 2012