As part of an agreement with Koch Pipeline Company, L.P., NuStar Logistics has reactivated its Pettus South Pipeline to transport Eagle Ford shale crude oil to Corpus Christi, TX.
“With the startup of this new capacity with NuStar, we are continuing to bring quick transportation solutions to Eagle Ford producers and to our customers in South Texas,” said Kim Penner, president of Koch Pipeline. “The NuStar line ties into our existing systems adding an immediate 30,000 barrels per day of capacity.”
The previously idled pipeline runs 60 miles from Pettus, to Corpus Christi. NuStar is operating the pipeline.
In other news, NuStar Logistics, EOG Resources Rail Yard (Louisiana) LLC and EOG Resources Marketing, Inc. (both subsidiaries of EOG Resources, Inc.) have entered into a definitive agreement to jointly develop, build and own a 70,000-bpd-unit train offloading facility at NuStar’s crude oil terminal in St. James, LA. The project will facilitate movement and storage of crude oil production from the Bakken, Eagle Ford and other developing shale plays.
NuStar’s 8-MMbbl terminal is one of the largest in the growing St. James crude oil hub and has interconnectivity to major crude infrastructure including onshore and offshore pipeline systems, as well as marine, truck and rail access. The new project will include the addition of new rail and unit train unloading facilities. Two new storage tanks with a combined 360,000 bbls of capacity will also be built in conjunction with the project. The new facility will be equipped to receive at least one 70,000-bpd train and will have enough track and other infrastructure to stage an additional train to await offloading. The rail project is expected to be completed in the first quarter of 2012, and the tanks are expected to be completed and in service in May 2012.