July 29, 2011 [OPIS] - Nustar Energy L.P. said on Friday that the San Antonio-based Master Limited Partnership and subsidiaries of EOG Resources signed definitive agreements for the construction of a 70,000 b/d unit rail offloading facility at its St. James, La., terminal.
OPIS notes this is the latest in a slew of rail projects to deliver cheap shale crude to the Gulf Coast refining hub. Approximately 360,000 bbl of tankage will also be constructed in conjunction with this project.
This project should give Nustar’s customers with access to production from the Bakken, Eagle Ford and other developing shale plays the opportunity to blend additional crudes in order to supply the LLS market.
NuStar’s estimated share of construction costs are in the range of $30 to $40 million and Nustar expects the project to be in operation in the second quarter of 2012.
In addition to the EOG Resources project, Nustar is actively in discussions with other companies regarding projects relating to the Eagle Ford Shale, the Barnett shale and Granite Wash tight sands formation.
