TexStar Midstream began on open season for a 110 mile crude pipeline in South Texas on December 12, 2011. The 100,000 b/d pipeline will move crude and condensate from Gardendale to Oakville, near Valero’s Three Rivers refinery. The company will then move volumes down to Corpus Christi through a NuStar pipeline. The project could be online as soon as mid-year 2012 and will be the first major pipeline and midstream expansion bringing oil to the coast.
In Corpus Christi, the oil will be able to be loaded on an ocean-going barge which can carry between 100,000 to 150,000 barrels or small ship carrying 300,000 barrels and sent up along the coast to Houston’s refinery row.
The expected terminus will eventually ending up further east along the Gulf Coast at the oil hub of St. James, Louisiana.
Monroe said that TexStar expects to get enough firm commitment for five years of transportation to make the project work as production from the Eagle Ford is expected to rise from about 200,000 bpd now to as much as a million bpd in 2016.
“There is incentive for shippers. We also expect to have walk-up shippers paying a walk-up tariff, which is a fairly common strategy,” said Monroe.
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