NuStar, Valero Agree to South Texas Pipeline Projects Aimed at Increasing Transportation of Eagle Ford and Other Crude Sources

abarrelfull wrote on 08 Sep 2011 05:35
Tags: nustar pipeline refinery usa valero

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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 Valero 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.

“These projects are an important part of our ongoing strategy to increase our customers’ ability to move crude in South Texas," said Curt Anastasio, president and CEO of NuStar. “With the growing production from the Eagle Ford region, NuStar is in the unique position to provide Valero and our other customers with quick transportation solutions given the fact that we have hundreds of miles of existing pipeline running from that region into Corpus Christi, where it can be refined or transported to other locations.”

• NuStar, Valero Agree to South Texas Pipeline Projects Aimed at Increasing Transportation of Eagle Ford and Other Crude Sources

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