Velocity and NuStar join together to help move and store condensate from the Eagle Ford. The facilities will add needed capacity for the regions growing production.
"Velocity will build and operate a new 70-mile, 12-inch pipeline with the capacity to move over 100,000 barrels per day of condensate from Gardendale to Oakville, Texas. Velocity's 12-inch pipeline will interconnect with NuStar's new Oakville Storage Facility near Three Rivers, Texas. This storage facility will be connected to NuStar's existing 16-inch pipeline, which has the capacity to transport approximately 200,000 barrels per day of crude and condensate into NuStar's Corpus Christi North Beach Terminal.
The North Beach terminal has approximately 2 million barrels of storage capacity, large-scale marine loading facilities, and access to several Corpus Christi refinery markets. NuStar also has a land lease option for 15 acres contiguous to the existing property, which will provide terminal expansion capabilities."
"Velocity is currently constructing 65 miles of pipeline and 150,000 barrels of storage to transport condensate to Velocity's Gardendale Terminal for producers, including Shell E&P, Chesapeake, SM Energy and Rosetta Resources. The addition of the NuStar partnership allows Velocity to quickly offer these and other producers a downstream solution to transport condensate from the Gardendale Terminal to end markets with strong purchaser demand. Construction of Velocity's 12-inch pipeline and NuStar's Three Rivers storage facility will begin this summer and the system is expected to be in service by April of 2012."
Read the full press release at NuStarEnergy.com