• NOV Downhole

 

NuStar and TexStar to develop extended Eagle Ford Shale pipeline system

NuStar Logistics, L.P. and TexStar Midstream Services, LP today announced that they have signed a letter of intent to develop a new pipeline system to transport Eagle Ford Shale crude and condensate to Corpus Christi.

TexStar will build and operate a new 65 mile, 12 in. pipeline that will have the capacity to move 120,000 bpd of crude and condensate from Frio County to Three Rivers. TexStar will build at least two truck unloading facilities, which will be located along the pipeline to gather crude oil produced in Atascosa, Frio, LaSalle, McMullen, and Live Oak counties. At Three Rivers, the TexStar pipeline will be interconnected with a new storage facility to be constructed by NuStar.

That storage facility will be connected to NuStar’s existing 16 in. pipeline that will have the capacity to transport 200,000 bpd into NuStar’s Corpus Christi North Beach Terminal. That terminal has approximately 2 million barrels of storage capacity, and the Port of Corpus Christi Authority recently approved a land lease option agreement for 15 acres contiguous to the existing property, which will provide terminal expansion capabilities. TexStar and NuStar expect to complete construction and begin service on the projects in the second quarter of 2012.

“We are excited to partner with NuStar on this project, and our combined facilities will provide South Texas producers with an open access, reliable, and low cost outlet for their oil,” said Phil Mezey, TexStar’s co-CEO and Chief Operating Officer.

Published on 06/04/2011


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