Related-Party Transactions

12 Months Ended

Dec. 31, 2019

We are party to fee-based commercial agreements with various affiliates of ETO for pipeline, terminalling and storage services. We also have agreements with subsidiaries of ETO for the purchase and sale of fuel.

On July 1, 2019, we entered into a 50% owned joint venture on the J.C. Nolan diesel fuel pipeline to West Texas. ETO operates the J. C. Nolan pipeline for the joint venture, which transports diesel fuel from Hebert, Texas to a terminal in the Midland, Texas area. Our investment in this unconsolidated joint venture was $121 million as of December 31, 2019. In addition, we recorded income on the unconsolidated joint venture of $2 million for the year ended December 31, 2019.

Summary of Transactions

Related party transactions with affiliates for the years ended December 31, 2019, 2018, and 2017 were as follows (in millions):



	Year Ended December 31,
	2019		2018		2017
Motor fuel sales to affiliates	$	7	$	33	$	55
Bulk fuel purchases from affiliates	$	821	$	1,947	$	2,416

Included in the bulk fuel purchases above are purchases from PES, which constituted 8.3% and 19.6% of our total cost of sales for the years ended December 31, 2018 and 2017, respectively.

Additional significant affiliate activity related to the Consolidated Balance Sheets are as follows:

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Net advances from affiliates were $140 million and $24 million at December 31, 2019 and 2018, respectively. Advances to and from affiliates are primarily related to the treasury services agreements between Sunoco LLC and Sunoco (R&M), LLC and Sunoco Retail and Sunoco (R&M), LLC, which are in place for purposes of cash management and transactions related to the diesel fuel pipeline joint venture with ETO.


•	Net accounts receivable from affiliates were $12 million and $37 million at December 31, 2019 and 2018, respectively, which are primarily related to motor fuel sales to affiliates.

•

Net accounts payable to affiliates were $49 million and $149 million as of December 31, 2019 and 2018, respectively, attributable to operational expenses and bulk fuel purchases.