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NuStar completes 3 pipelines projects carrying crude out of the Permian

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NuStar completes 3 pipelines projects carrying crude out of the Permian

NuStar Energy LP started moving volumes on three pipeline projects, expanding the partnership's capacity to transport crude oil out of the Permian Basin, according to a Sept. 4 news release.

The completed projects include the second stage of its West Texas Intermediate export project, which will transport crude from a connection to Plains All American Pipeline LP's Cactus II long-haul pipeline in Taft, Texas, to NuStar's terminal in Corpus Christi, Texas.

NuStar said it is also building 600,000 barrels of additional storage at the Corpus Christi terminal, hiking its total capacity to 3.9 million bbl. It is scheduled for completion in December.

The partnership also started up the expansion of its Valley Pipeline System in South Texas, increasing refined products capacity from Corpus Christi to the Rio Grande Valley and northern Mexico. The expansion doubled the pipeline's capacity to approximately 90,000 bbl/d. The expansion included adding a 75-mile pipeline loop between Seeligson, Texas and Edinburg, Texas, as well as modifications at pump stations along the system.

NuStar began deliveries of diesel into northern Mexico after reactivating its existing refined products pipeline connecting the Laredo terminal in South Texas and the Nuevo Laredo terminal in Mexico. The project also involved the installation of a new border crossing under the Rio Grande River.

NuStar is also adding tankage and truck loading bays at the Nuevo Laredo terminal, which are expected to be completed in February 2020. The expansion is part of a contract agreement between NuStar and Valero Energy Corp. for refined product deliveries from Valero's Corpus Christi and Three Rivers, Texas, refineries.

"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," NuStar President and CEO Brad Barron said in the release.