February 1, 2013 [MySouTex] - The San Antonio-based company, NuStar, has made some big changes in the past few months that will expand its South Texas presence.
The company closed on an acquisition in December that brought them additional crude oil lines, gathering and storage facilities and natural gas liquids assets all located within the Eagle Ford.
The acquisitions were from TexStar Midstream Services LP.
“This acquisition fits our new direction to focus on our fee-based businesses,” Jim Siciliano, vice president of business development for NuStar, said. “Everything we are acquiring is attached or will be integrated to our existing system.
This area has been a key growth area for NuStar, and the TexStar assets are a natural fit since NuStar and TexStar had worked together to create a pipeline system that provides producers and marketers a transportation solution from the production area to Corpus Christi.”
The crude assets acquired include a pipeline of approximately 140 miles that runs from LaSalle and Frio counties to Live Oak County, according to a press release from the company. Along with the pipeline came five storage terminals, including one currently being constructed in McMullen County.
The storage terminals are located in LaSalle, Frio, McMullen and Live Oak counties. Expansions are planned for one of the McMullen facilities and the Gardendale terminal in LaSalle County.
Additionally, the company plans to build a 100,000-barrel storage facility near Pawnee.
“NuStar is constructing a new terminal that will receive crude oil by truck and pipeline from COP (ConocoPhillips) and other customers producing oil in the area,” Siciliano said.
“The facility will have the 100,000 barrels of storage, a five land truck unloading rack and pipeline connection to COP’s nearby facility. The facility also will have room to add additional storage, truck unloading positions and pipeline connections.”
Additional natural gas liquids (NGLs) that were acquired include a 38-mile Y-gradeline that runs from Pettus to Refugio.
In mid-December, the company also announced that it “entered into a long-term pipeline and terminal services agreement with ConocoPhillips that will allow expansion of NuStar’s South Texas Crude Oil Pipeline System,” according to a press release on the company website.
“In addition to the Pawnee terminal, Oakville truck unloading and the pipeline extension, NuStar is constructing a new ship dock at our North Beach Terminal in Corpus Christi to accommodate the growth in crude oil deliveries on our pipeline systems in South Texas, including the recently completed TexStar acquisition and the new facilities being developed to service COP,” Siciliano said.
The company has no qualms about spending money in 2013, and is estimated to spend $400 to $500 million over the next 18 to 24 months, according to a company-issued press release.
The money will be spent on integrating acquired assets with existing assets and in other areas.
The company has long-term plans and goals for the South Texas area.
“We will integrate the new personnel joining NuStar into our employee and community focused corporate culture,” Siciliano said. “We believe that these assets are a key building block on which we will continue to expand our midstream services in South Texas.”
