Project to Double Pipeline Capacity of NuStar’s Valley Pipeline
System As Part of Effort to Supply Refined Products to Northern Mexico
NuStar Has Secured Significant Customer Commitments, Enough to
Proceed With Project, Now Seeking Additional Customer Interest
SAN ANTONIO--(BUSINESS WIRE)--Jun. 12, 2019--
NuStar Energy L.P. (NYSE: NS) announced today the start of its Binding
Open Season for committed refined product transportation on the expanded
capacity of its Valley Pipeline System in South Texas.
The Valley Pipeline System is an approximately 196-mile refined products
pipeline from the Corpus Christi, TX area, to delivery points in
Brownsville, TX, Edinburg, TX and Harlingen, TX. The current Valley
Pipeline System is capable of transporting approximately 45,000 barrels
per day (BPD). The expansion project, which includes the construction of
a 75-mile loop of the pipeline segment between Seeligson, TX and
Edinburg, TX, and improvements at pump stations along the line, is
expected to increase the capacity of the Valley Pipeline System by
approximately 45,000 BPD. Based on significant customer commitments to
utilize the expanded capacity, NuStar is proceeding with the project and
the binding open season is intended for additional customer interest for
the offered capacity and potential further capacity expansion. NuStar is
proposing to make up to 90 percent of the expanded capacity available to
shippers making long-term, ship-or-pay commitments, with at least 10
percent available for walk-up shippers. The project is expected to be in
service in the third quarter of 2019.
Binding Open Season
Under the NuStar Valley Pipeline System Expansion Open Season, potential
shippers will have the opportunity to make volume commitments for
priority transportation service on the expanded capacity by signing a
Transportation and Deficiency Agreement. The Open Season commenced at
noon CDT on June 12, 2019 and will extend until 5:00 pm CDT on July 12,
2019. The Notice of Binding Open Season is available on the NuStar
Energy L.P. website at www.nustarenergy.com.
Potential shippers must sign confidentiality agreements before receiving
the Open Season documents. A copy of the confidentiality agreement is
available by contacting ValleyPipelineOpenSeason@nustarenergy.com.
About NuStar Energy L.P.
NuStar Energy, 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 Energy currently has approximately 9,800
miles of pipeline and 75 terminal and storage facilities that store and
distribute crude oil, refined products and specialty liquids. NuStar
Energy’s combined system has more than 88 million barrels of storage
capacity, and NuStar Energy has operations in the United States, Canada,
Mexico and St. Eustatius in the Caribbean.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190612005789/en/
Source: NuStar Energy L.P.
NuStar Energy, L.P., San Antonio
Investors, Tim Delagarza, Manager,
Investor Relations: 210-918-INVR (4687)
Mary Rose Brown, Executive Vice President and Chief Administrative
Corporate Communications: 210-918-2314