NuStar Announces Open Season

April 6, 2015 Elizabeth Alford

NuStar: South Texas Crude Pipeline System

NuStar energy announced this week that it has opened up space for new shippers in its South Texas Crude Oil Pipeline System during an open season scheduled for April 2-23rd.

During these open seasons, shippers can reserve space in a pipeline by promising a long-term financial commitment to the project. NuStar’s current project is a new origin point to enter the South Texas Crude Oil Pipeline System and is located at highway 99 in McMullen County. This location will provide space for an additional 10,000 barrels per day to potential shippers.

Interested shippers seeking pipeline space in Eagle Ford Shale can receive more information about rates, service and routes by contacting Rick Webb, Vice President-Business Development, at 210.918.2000.

NuStar Energy is based in San Antonio and is one of the largest independent liquids terminal and pipeline operators in the nation. The company’s South Texas Crude Oil Pipeline System consists of over 200 miles of crude transmission and gathering lines throughout Texas including from LaSalle, McMullen, Frio and Live Oak Counties.

NuStar Fills Expansion Phase 1, Still Receiving Commitments on Phase 2

October 11, 2013 R.T. Dukes

NuStar Energy has received binding commitments filling its first phase of the company's planned Eagle Ford expansion.

Read more about the expansion in the article - NuStar Energy Planning Eagle Ford Pipeline Expansion

The first phase will increase capacity by 35,000 b/d to the company's Corpus Christi North Beach Facility. The second phase will increase capacity by as much 65,000 b/d. Phase 1 should be complete in the third quarter of 2014.

NuStar Planning Eagle Ford Oil Pipeline Expansion - Open Season Started

July 25, 2013 R.T. Dukes

NuStar Energy has launched a binding open season to determine interest in an expansion of the company's Eagle Ford Shale - South Texas oil system. The expansion will add as much as 100,000 b/d of capacity moving oil to the company's Corpus Christi North Beach facility.

NuStar spent $425 million to acquire assets from TexStar Midstream in late 2012 and those assets will be part of the expansion.

The expansion between the company's Gardendale Terminal in La Salle County and Corpus Christi will be conducted in two phases:

Phase 1 - Will add 35,000 b/d of throughput available in the 3rd quarter of 2014
Phase 2 - Will add 65,000 b/d of throughput available in the first quarter of 2015

The expansion will raise total capacity in the system to ~200,000 b/d. NuStar is making 90,000 of the 100,000 b/d expansion available to shippers.

The open season continues through noon on August 30, 2013

Read the full press release at nustarenergy.com

NuStar - ConocoPhillips Ink Midstream Deal - Expanding Crude System

December 17, 2012 R.T. Dukes

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.

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.