NuStar Energy executes key capital projects
NuStar Energy has completed three capital projects that expand the company’s capacity to move Permian crude oil to Corpus Christi for export and refined products into Northern Mexico.
“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,” NuStar President and CEO Brad Barron said. “And we expect continued growth for both Permian and Eagle Ford barrels going forward.”
Following the completion of a project connecting the partnership’s existing 16-inch pipeline in South Texas to the Plains Cactus II pipeline transporting WTI volumes from the Permian Basin to South Texas, NuStar completed the second stage of its WTI export project, a new eight-mile, 30-inch 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 also 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.
“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.”
