NuStar - ConocoPhillips Ink Midstream Deal - Expanding Crude System

NuStar - ConocoPhillips Pipeline and Terminal Expansion
NuStar - ConocoPhillips Pipeline and Terminal Expansion

NuStar Energy and ConocoPhillips have agreed to a long-term pipeline and terminal services agreement that is supporting expansion of NuStar's crude oil pipeline system in the Eagle Ford.

Nustar plans to expand its pipeline system and add a 100,000 b/d terminal in Pawnee, TX. The new terminal will connect to an existing 12-inch pipeline that moves crude from Pettus to Three Rivers. From there, the pipeline will be extended to an existing Oakville Terminal for delivery to the company's North Beach Terminal. New truck receiving facilities in Pawnee and Oakville are planned, along with new refinery connections in Corpus Christi.

NuStar Announced a $425 Million South Texas Acquisition from TexStar Midstream just a month earlier.

Curt Anastasio, CEO of NuStar commented: “This expansion, backed by major producers like ConocoPhillips, cements NuStar’s position as a key logistics provider for Eagle Ford Shale play. We are fortunate to have extensive pipeline and terminal assets already in operation throughout the region with the capacity to easily support an expansion of this size and help support the incredible production growth taking place in the Eagle Ford Shale play.”

A new ship dock in Corpus Christi is already under construction. The private dock will give NuStar access to waterborne markets.

Pipeline expansions are expected to be completed in the fourth quarter of 2013 and the dock facility will be finished in the first quarter of 2014. Total costs for the Conoco supported expansions is estimated at $100-120 million.