Shippers to Have Option to Access Both Cushing and Gulf Coast Markets
as Well as Multiple Refineries along Proposed Pipeline Route
SAN ANTONIO--(BUSINESS WIRE)--Oct. 15, 2012--
NuStar Energy L.P. (NYSE: NS) announced today the launch of a Binding
Open Season by its affiliate, NuStar Logistics, L.P. (“NuStar”), to
assess shipper interest in firm priority space to transport crude
petroleum from the Niobrara Shale near Platteville and Watkins, Colorado
to Wichita Falls, Texas (the “Niobrara Falls Project”). The Niobrara
Falls Project would also have the capability to transport Permian and
Granite Wash crude petroleum delivered into NuStar’s Dixon, Texas Tank
Farm for delivery to the various destinations. The Niobrara Falls
Project would allow shippers the option to supply various refiners along
the pipeline routes, including Suncor Energy’s Denver, Colorado
refinery; Valero Energy’s McKee, Texas and Ardmore, Oklahoma refineries;
and WRB’s refinery in Borger, Texas. In addition, it is expected that at
Wichita Falls, Texas, shippers would have the option to access the
Nederland/Beaumont, Texas markets and/or the Cushing hub via third-party
pipelines.
Proposed Niobrara Falls Project
The proposed Niobrara Falls Project would include construction of new
crude petroleum pipelines from gathering locations in the Niobrara Shale
near Platteville, Colorado and near Watkins, Colorado to a tie-in point
on NuStar’s existing 10” McKee, Texas to Denver, Colorado petroleum
products pipeline (the “NuStar Colorado 10” Pipeline”). The NuStar
Colorado 10” Pipeline would be converted to crude oil service, reversed
and connected with NuStar’s existing 14” Wichita Falls, Texas to McKee,
Texas crude oil pipeline (the "NuStar Wichita Falls 14” Pipeline"),
which would also be reversed. The NuStar Colorado 10” Pipeline would
have an approximate capacity of 70,000 to 75,000 barrels per day, and
the NuStar Wichita Falls 14” Pipeline would have an approximate capacity
of 125,000 to 130,000 barrels per day. Shippers would have the option to
contract for storage at the origin points near Platteville and Watkins,
Colorado. Subject to sufficient commitments from shippers, necessary
permits, regulatory and internal approvals, the reversed NuStar Wichita
Falls 14” Pipeline portion of the Niobrara Falls Project is expected to
begin service on or about April 1, 2013, with full Niobrara Falls
Project service expected to begin around the 1st quarter of
2014.
Access to Gulf Coast and Cushing Markets
It is expected that the proposed Niobrara Falls Project would connect to
the Sunoco Logistics Partners, L.P. Permian Express Phase I project at
Wichita Falls, Texas and to the Basin System at Wichita Falls, Texas for
further continuous pipeline service to the Nederland/Beaumont, Texas
markets and/or the Cushing hub.
Binding Open Season
The Niobrara Falls Project Binding Open Season will commence on October
15, 2012 and will end at noon CT on November 15, 2012. Subject to the
terms of the Binding Open Season documents, firm priority space would be
available to shippers making long-term volume commitments during the
Binding Open Season. Commitment terms of five, seven or ten years would
be available. The Notice of Binding Open Season is available on the Web
site of NuStar Energy L.P. at www.nustarenergy.com/Customers/Pages/NuStarOpenSeason.aspx. Bona
fide potential shippers that would like to receive copies of the open
season documents, including the throughput and deficiency agreement, are
required to execute a confidentiality agreement (the “CA”) in the form
available at www.nustarenergy.com/Customers/Pages/NuStarOpenSeason.aspx.
To execute the CA, a potential shipper must insert its name,
jurisdiction of incorporation or formation, contact information, and
submit an executed copy signed by a duly authorized representative of
the shipper to: niobrarafallsopenseason@nustarenergy.com.
CAs that have been altered or amended in any way (other than by
inserting the requested information delineated above) will not be
accepted by NuStar.
More information about the Binding Open Season is available by
contacting: NuStar Energy L.P., Patrick Eurek, Vice President Business
Development, 210-918-2134 or niobrarafallsopenseason@nustarenergy.com.
NuStar Energy L.P., 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 currently has 8,433 miles of
pipeline; 82 terminal and storage facilities that store and distribute
crude oil, refined products and specialty liquids; a fuels refinery with
a throughput capacity of 14,500 barrels per day; and 50% ownership in
two asphalt refineries with a combined throughput capacity of 104,000
barrels per day. The partnership’s combined system has approximately 94
million barrels of storage capacity, and NuStar has operations in the
United States, Canada, Mexico, the Netherlands, including St. Eustatius
in the Caribbean, the United Kingdom and Turkey. For more information,
visit NuStar Energy L.P.'s Web site at www.nustarenergy.com.
Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50439025&lang=en
Source: NuStar Energy L.P.
NuStar Energy, L.P., San Antonio
Investors, Chris Russell, Vice
President
Investor Relations: 210-918-3507
or
Media, Mary
Rose Brown, Senior Vice President,
Corporate Communications:
210-918-2314
Web site: http://www.nustarenergy.com