NuStar Energy L.P. has signed a long-term agreement allowing Occidental Petroleum to ship NGLs on the company’s idled 200-mile, 12-inch pipeline between Mont Belvieu and Corpus Christi, TX.
NuStar has begun work to reactivate the line, reverse its flow and convert it from refined products service to NGL service. The pipeline has capacity to move 110,000 bpd. Oxy will use a majority of the line’s capacity to transport NGLs via an interconnect with an Oxy pipeline to the Oxy Ingleside Energy Center export facility in Ingleside.
NuStar will continue to market any remaining capacity on the pipeline. The pipeline project is scheduled to be completed and in full operation in the second quarter of 2015, although the pipeline may flow at reduced rates this year.