Energy Transfer, Sunoco form Permian basin crude oil joint venture

Energy Transfer LP and Sunoco LP have formed a joint venture to be operated by Energy Transfer that will combine the companies’ crude oil and produced water gathering assets in the Permian basin.            

The joint venture will operate more than 5,000 miles of crude oil and water gathering pipelines with crude oil storage capacity of more than 11 million bbl, Energy Transfer said in a release July 16.

Energy Transfer will serve as operator of the JV with a 67.5% interest. Sunoco will hold the remaining 32.5%.

Energy Transfer's long-haul crude pipeline network that provides transportation of crude oil out of the Permian basin to Nederland, Houston, and Cushing is excluded from the new venture.