NuStar inks deal with Oxy to transport Texas NGLs

SAN ANTONIO -- NuStar Energy announced 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-mi, 12-in. 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 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 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.