NuStar Energy L.P. Completes Three Major Capital Projects to Expand Capacity to Transport & Export Permian Crude Oil, & Move ...
September 04 2019 - 6:45AM
Business Wire
NuStar Energy L.P. (NYSE: NS) announced today that
it has completed and is moving volumes on three key pipeline
projects that will significantly expand the partnership's capacity
to move Permian crude oil to Corpus Christi for export, and to move
refined products into Northern Mexico.
On the heels of completing a project connecting the
partnership's existing 16” pipeline in South Texas to the Plains
Cactus II pipeline that transports WTI volumes from the Permian
Basin to South Texas, NuStar completed the second stage of its WTI
export project, a new eight-mile, 30” pipeline to transport crude
oil from a connection to the Plains Cactus II long-haul pipeline in
Taft, Texas, to NuStar’s Corpus Christi terminal. NuStar is also
building 600,000 barrels of additional storage at the Corpus
Christi terminal, which will bring its total capacity to 3.9
million barrels. This storage expansion is expected to be completed
in December 2019.
“We are very excited about the continued growth of our South
Texas Crude System, which is once again experiencing throughput at
near the historically high levels we saw in the Eagle Ford’s heyday
in 2015, and the increased utilization of our Corpus Christi export
terminal, which is now handling the leading edge of the impending
wave of Permian long-haul crude oil,” said NuStar President and CEO
Brad Barron. “And we expect continued growth for both Permian and
Eagle Ford barrels going forward.”
On the same day, NuStar began moving volumes on its newly
expanded Valley Pipeline System in South Texas after increasing the
system’s capacity to supply refined products from Corpus Christi to
the Rio Grande Valley and Northern Mexico. The expansion
essentially doubled the pipeline's capacity from 45,000 barrels per
day (BPD) to approximately 90,000 BPD. The expansion included
adding a 75-mile loop of 12” pipeline between Seeligson, TX and
Edinburg, TX, and making improvements at pump stations along the
system, which includes delivery points in Brownsville, TX,
Edinburg, TX and Harlingen, TX.
And, NuStar also began moving volumes of diesel into Northern
Mexico following the reactivation of the partnership’s existing
11-mile, 8” refined products pipeline connecting its Laredo
Terminal in South Texas and its Nuevo Laredo Terminal in Mexico.
The reactivation included the installation of a new border crossing
by horizontal drill under the Rio Grande River. NuStar is currently
building additional tankage and truck loading bays at the Nuevo
Laredo Terminal, all of which are expected to be completed in
February 2020. The expansion efforts are related to a previously
announced contract agreement between NuStar and Valero to move
refined products from Valero's Corpus Christi and Three Rivers, TX
refineries.
“We are pleased that we were able to utilize and expand existing
assets to help address the supply imbalance in Northern Mexico that
is expected to continue growing and exceeding that country’s
infrastructure,” Barron said. “In addition to the agreement with
Valero on the Nuevo Laredo project, there was an outstanding
response from customers on the Valley Pipeline expansion with our
recent open season being fully subscribed and resulting in
seven-year contract terms.
“It’s an amazing coincidence that all three of these projects,
each of which has been years in the making, all began moving
volumes within 24 hours of each other,” Barron added. “Each project
is backed by long-term commitments with strong customers, and
completing these projects on time and on budget is a testament to
the outstanding work of our employees and contractors. And we look
forward to even more growth opportunities in the future.”
About NuStar Energy L.P.
NuStar Energy L.P., a publicly traded master limited partnership
based in San Antonio, is one of the largest independent liquids
terminal and pipeline operators in the nation. NuStar Energy
currently has approximately 9,800 miles of pipeline and 74 terminal
and storage facilities that store and distribute crude oil, refined
products and specialty liquids. The partnership’s combined system
has approximately 74 million barrels of storage capacity, and the
partnership has operations in the United States, Canada and Mexico.
For more information, visit NuStar Energy L.P.’s website at
www.nustarenergy.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190904005305/en/
NuStar Energy, L.P., San Antonio Investors, Chris Russell,
Treasurer and Vice President Investor Relations Investor Relations:
210-918-3507 or Media, Mary Rose Brown, Executive Vice President
and Chief Administrative Officer, Corporate Communications:
210-918-2314 website: http://www.nustarenergy.com
NuStar Energy (NYSE:NS)
Historical Stock Chart
From Mar 2024 to Apr 2024
NuStar Energy (NYSE:NS)
Historical Stock Chart
From Apr 2023 to Apr 2024