November 30, 2010 [OPIS] - NuStar currently controls some 93 million bbl worth of global petroleum storage, but it has several "organic" projects that will allow it to grow next year even if it doesn't make an acquisition. The company last made a big splash in the deal market when it acquired Citgo asphalt and refining operations on the East Coast.
NuStar senior vice president Steve Blank told investors at a Master Limited Partnership conference last week that the company would be adding 500,000 bbl of additional clean products storage at Jacksonville, Fla., and he also cited a project in Denver. The Denver work should result in local refiner Suncor depending more on the NuStar rack to supply Colorado jobbers, sources say. Meanwhile, the Jacksonville build-out is expected to result in Motiva as the principal tenant. Motiva has massive new Gulf Coast refined products output coming on in early 2012, and has secured several other terminaling arrangements at East Coast deepwater points.
Also planned is an additional 3 million bbl of crude storage in St. James, La., at a terminal NuStar bought from Koch a few years ago. The MLP is also performing work on about 1.5 million bbl of storage at a Caribbean terminal, with 600,000 bbl of resid storage getting converted to distillate.
