Related-Party Transactions

6 Months Ended

Jun. 30, 2020

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 $136 million and $121 million as of June 30, 2020 and December 31, 2019, respectively. In addition, we recorded income on the unconsolidated joint venture of $1 million and $2 million for the three and six months ended June 30, 2020, respectively.

Summary of Transactions

Related party transactions with affiliates for the three and six months ended June 30, 2020 and 2019 were as follows (in millions):



	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Motor fuel sales to affiliates	$	37	$	—	$	49	$	1
Bulk fuel purchases from affiliates	$	120	$	103	$	439	$	282

Significant affiliate balances and activity related to the consolidated balance sheets are as follows:

•

Net advances from affiliates were $138 million and $140 million as of June 30, 2020 and December 31, 2019, respectively. Advances 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 $6 million and $12 million as of June 30, 2020 and December 31, 2019, respectively, which are primarily related to motor fuel sales to affiliates.

•

Net accounts payable to affiliates were $29 million and $49 million as of June 30, 2020 and December 31, 2019, respectively, which are related to operational expenses and bulk fuel purchases.