Sunoco Logistics landed permits Friday for construction of a butane blending facility at the BP Jacksonville Terminal at 2101 Zoo Parkway in North Jacksonville.
The permits show Milton J. Wood Co. as the contractor and Sunoco Logistics Partners LP as the developer.
The City approved six construction permits for the project, whose collective project costs total $1.22 million.
Plans show foundations, modular buildings, pipes and supports, a tank and other equipment.
Sunoco Logistics Project Manager Paul Raetz told the Daily Record earlier in August that the company will build the project and run it with BP. He said the facility will be monitored from Sunoco’s office in Sugar Land, Texas.
Raetz said BP requested Sunoco to build the facility, although he did not have the total investment cost. He said construction should be completed by the end of the year.
Raetz, who is based in Reading, Pa., said the process involves injecting butane into the gasoline from Sept. 16-April 30 to meet environmental standards. Those are the coolest months of the year, he said.
To recap, the largest of the permits, valued at $732,931, is for the LP tank installation, a pump, an offload station, foundations and skids, pipe supports and other piping, barriers and fencing.
Another permit, at $390,591, shows foundation installation and more pipes and supports.
The four remaining permits, with project costs of $19,344 to $31,102, are for more foundations, modular buildings and processing equipment.
The www.sunocologistics.com website states that a butane facility will “find new revenue at your existing gasoline terminal or pipeline.”
“Sunoco Logistics uses the only U.S. patented Automated Butane Blending System to continuously monitor gasoline flows, create additional gasoline through butane blending and ensure that all gasoline meets but does not exceed state and EPA specifications,” it says.
“Sunoco Logistics’ dedicated team of specialists will construct your custom blending system, manage and deliver your certified butane inventory, provide regulatory guidance, provide support with onsite technicians and remotely monitor your blending 24/7. Sunoco Logistics will focus on managing the blending so you can continue to focus on your core competencies,” it says.
Sunoco Logistics Partners L.P. is based in Philadelphia. According to its annual report filed with the Securities and Exchange Commission, the company acquired a butane blending business in 2010 and expanded its refined products acquisition and marketing activities.
“In 2011, we continued to expand our butane blending service platform by installing our blending technology at both our refined products terminals and third-party facilities. Revenues from these activities are generated through sales of refined products which are purchased in bulk or generated through blending,” said the SEC filing.
Sunoco reported that its expansion capital expenditures increased by $34 million to $171 million for the year that ended Dec. 31. It said expansion capital for 2011 included projects to expand its butane blending services and other plans, including increasing tankage at its Nederland, Texas, facility, increasing connectivity of its crude oil pipeline assets in Texas and increasing its crude-oil trucking fleet to meet the demand for transportation services in the southwest United States.
It said management expects to invest about $300 million in expansion capital projects in 2012, excluding acquisitions.
“Projected expansion capital includes projects to capture more value from existing assets” and those include “our patented butane blending technology” and other projects, it said.
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