NuStar Buying Eagle Ford Midstream Assets - Selling San Antonio Refinery

November 12, 2012 R.T. Dukes

NuStar Energy has agreed to buy Eagle Ford midstream assets from TexStar Midstream for $425 million. The deal will be completed in two pieces - crude oil assets then NGL assets.The crude oil system moves through La Salle, Frio, and Live Oak counties moving 60,000 b/d, with the potential to move as much as 100,000 b/d.

NuStar will also sell its San Antonio refinery and associated terminal in Elmnedorf, TX. The refinery refines a little more than 14,000 b/d of crude and is being sold as part of the company's strategy to move away from margin based businesses. NuStar has approximately $90 million invested in the refinery to date.

“The TexStar acquisition and refinery divestiture are the next critical steps in our strategic redirection of NuStar away from the margin-based refining and marketing business in order to further grow our fee-based pipeline and storage operations through internal growth projects and acquisitions,” said NuStar President and CEO Curt Anastasio. “NuStar was actually the first company to move Eagle Ford crude by pipeline, and we are fortunate to have extensive pipeline and terminal assets already in operation throughout the Eagle Ford region.

NuStar see's a very bright investment climate in South Texas. The company stated there are more high return opportunities in fee based transportation and storage projects than they have ever had in the history of the company. Expect to hear more from NuStar as the company builds additional pipelines in infrastructure in the region.

Plains All American - Enterprise Products Eagle Ford Crude Oil Pipeline Joint Venture

August 7, 2012 R.T. Dukes

Plains All American and Enterprise Products announced an Eagle Ford crude oil pipeline joint venture this past weekend. The deal provides that the two companies will consolidate portions of previously announced projects. Between the two companies, they have long-term commitments of 210,000 barrels per day.

The joint venture will include 140 miles of crude oil and condensate pipeline that will extend from Gardendale in La Salle County to Three Rivers in Live Oak County, then continuing on to Corpus Christi and an Enterperise Station in Wilson County. The pipeline is planned for potential capacity of 350,000 b/d.

In Corpus Christi, the pipeline will tie into a marine terminal with storage capacity of 1.8 million barrels. In Wilson County, the pipeline will tie into Enterprise's Eagle Ford crude oil system that continues on to Sealy, TX.

Read more from the Plains' press release at paalp.com

Kinder Morgan's Eagle Ford Crude & Condensate Pipeline in Service

June 22, 2012 R.T. Dukes

KinderMorgan-Logo

Kinder Morgan's Crude/Condensate (KMCC) pipeline from the Eagle Ford Shale to the Houston Ship Channel went in service last week. The $215 million pipeline has capacity of 300,000 b/d. The pipeline's construction included converting 113 miles of natural gas pipeline and 65 miles of new pipeline. The line is a direct tie from the Eagle Ford into the Gulf Coast refining complex.

KMCC will also connect the line to a future condensate processing facility planned by near Galena Park. The $200 million facility will have 50,000 b/d of initial capacity, expandable to 100,000 b/d.

Plains All American Pipeline Buys Velocity Midstream's Eagle Ford Assets

December 2, 2011 Kenny DuBose

Plains All American Pipeline (PAA) announced plans to acquire Volocity Midstream's - Velocity South Texas Gathering assets. The pipeline and midstream deal includes over 120 miles of crude oil and condensate pipe with capacity of 150,000 barrels per day through parts of Dimmit, La Salle, and Webb counties. The pipeline system is underpinned by volume commitments from major producers in the area. If warranted, the system can be expanded to handle 185,000 barrels per day. The system also has storage capacity at Catarina and Gardendale. The Gardendale facility ties directly into Plains All American's existing Eagle Ford pipeline.

The deal was part of a larger announcement by PAA that included assets on the East Coast, in the Permian Basin, and in Canada for a total of $620 million. Much of the midstream activity in South Texas to date has been new projects, but we expect more consolidation in the coming months as midstream companies look to gain a true foothold in the area. Infrastructure has been one of the few restricting factors in the play, but major projects are on pace to remedy current concerns over the next couple of years.

The Partnership recently closed the acquisition of 100 percent of the member interests in Velocity South Texas Gathering, LLC ("Velocity") from Velocity Midstream Partners, LLC. The deal includes approximately 120 miles of crude oil and condensate gathering and transportation pipelines currently in advanced stages of construction in the area of South Texas.
The Gardendale storage hub will have access to PAA's Eagle Ford pipeline as well as other transportation alternatives, including third party pipelines, truck and rail. Over the next 18 to 24 months, PAA expects to complete current construction, extend the system to access additional condensate barrels and other crude oil-oriented portions of the major resource play, and increase terminal capacity at Gardendale from 150,000 barrels to 250,000 barrels.

Read the entire news release at paalp.com

NuStar - Valero Reach Eagle Ford Pipeline Agreements

September 8, 2011 Kenny DuBose

NuStar Energy and Valero have reached an agreement that will help move South Texas Eagle Ford crude to local refineries. NuStar will convert a current refined products pipeline to crude oil and the line will be used to move oil from Three Rivers to Corpus Christi where Valero has an additional refinery. The company also plans a new 12 inch pipeline that will make the same journey. Valero has indicated it plans to increase the volume of crude the company is taking from the Eagle Ford and this looks to be another step in that direction.

NuStar Energy L.P. (NYSE: NS) announced today that the company has entered into an agreement with Valero Energy Corporation (NYSE: VLO) in which NuStar will modify existing sections within its South Texas pipeline system and build new sections to transport Eagle Ford and other crude oils. These projects will help improve transportation of crude and condensate to supply its refineries in Three Rivers, Texas and Corpus Christi, Texas.

NuStar will reverse an eight-inch refined products pipeline that currently runs from Corpus Christi to Three Rivers and will convert it to crude oil service. The pipeline will provide capacity to transport Eagle Ford crude and condensate to Valero’s Corpus Christi refinery, and the line is expected to be in full service by the end of September 2011.

NuStar will also build 55 miles of new 12-inch pipeline that will connect to existing pipeline segments to move crude oil from Corpus Christi to Valero’s Three Rivers refinery. This system is expected to be completed and in service by the second quarter of 2012.”

Read the full press release at nustarenergy.com