Agreement Expected To Provide Significant Earnings Accretion for
SAN ANTONIO--(BUSINESS WIRE)--Feb. 5, 2014--
NuStar Energy L.P. (NYSE: NS) announced today that the company has
signed a long-term agreement allowing Occidental Petroleum (Oxy) to ship
natural gas liquids (NGLs) on NuStar’s currently idled, 200-mile,
12-inch pipeline between Mont Belvieu and Corpus Christi, Texas.
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 approximately 110,000 barrels per day. 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
located in Ingleside, Texas, at the site of the former Naval base
purchased by Oxy in 2012. 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.
Once the line is in service, it is expected to generate approximately
$23 million per year of incremental EBITDA for NuStar.
“Our Mont Belvieu-to-Corpus Christi pipeline is one of the key pipelines
in our South Texas system, and we are very pleased to have reached an
agreement with Oxy to reactivate and utilize the line,” said NuStar
President and CEO Brad Barron. “The agreement will begin generating
distributable cash flow for NuStar in April of this year, and we look
forward to exploring opportunities with Oxy and other companies to meet
their NGL transportation needs.”
About NuStar Energy L.P.
NuStar Energy L.P., a publicly traded master limited partnership based
in San Antonio, is one of the largest independent liquids terminal and
pipeline operators in the nation. NuStar currently has 8,643 miles of
pipeline; 89 terminal and storage facilities that store and distribute
crude oil, refined products and specialty liquids; and 50% ownership in
a joint venture that owns a terminal and an asphalt refinery with a
throughput capacity of 74,000 barrels per day. The partnership’s
combined system has approximately 97 million barrels of storage
capacity, and NuStar has operations in the United States, Canada,
Mexico, the Netherlands, including St. Eustatius in the Caribbean, the
United Kingdom and Turkey. For more information, visit NuStar Energy
L.P.’s Web site at www.nustarenergy.com.
Source: NuStar Energy L.P.
NuStar Energy, L.P., San Antonio
Investors, Chris Russell,
Treasurer and Vice President Investor Relations
Media, Mary Rose Brown, Executive Vice
Corporate Communications: 210-918-2314
Web site: http://www.nustarenergy.com