SAN ANTONIO--(BUSINESS WIRE)--Oct. 15, 2014--
NuStar Energy L.P. (NYSE: NS) and PMI, an affiliate of Pemex, announced
today that the companies have signed a letter of intent for a proposed
joint venture (JV) in which the two companies will develop new pipeline
infrastructure to transport liquefied petroleum gases (LPGs) and refined
products from the U.S. into northern Mexico to meet the region’s growing
demand for these products.
“This landmark alliance is one of the very first commercial agreements
between energy companies from the U.S. and Mexico to create a JV focused
on infrastructure, and it resulted from Mexico’s recently enacted energy
reforms, which call for major investments in energy infrastructure and
attracting foreign investment in Mexico’s energy sector,” said PMI
Director General Jose Manuel Carrera. “It would also be the first
alliance of its kind for both of our companies. While NuStar and PMI
previously partnered to transport propane into Mexico, this would be the
first JV between the companies, and it would give PMI access to multiple
LPG and refined product suppliers in major refining centers in the U.S.
Gulf Coast. Because the agreement primarily involves pipeline
transportation of the products into Mexico, it would result in more
efficient, clean, and reliable transportation of refined products and
LPGs between the U.S. and Mexico by reducing the amount of petroleum
products transported by truck across the border.”
Under the proposed JV, the companies will jointly fund construction of
new pipeline and storage assets, and NuStar would manage construction
and operation of those assets. LPGs and refined products will be
delivered from Mont Belvieu and Corpus Christi, Texas, to Nuevo Laredo
and Burgos-Reynosa, Mexico.
The new pipeline and terminal facilities will be integrated with
NuStar’s existing pipeline infrastructure. This project will be
supported by a throughput commitment from PMI.
“This is an ideal partnership that would bring together PMI’s vast
presence in Mexico’s oil and gas market and NuStar’s logistics expertise
and resources to provide a stable supply of LPGs and refined products to
meet the significant demand in Mexico,” said NuStar President and CEO
Brad Barron. “This is an outstanding growth opportunity for NuStar, and
our preliminary estimates indicate that this JV opportunity should be
immediately accretive to the earnings of both companies once the project
goes into service.”
Based on current projections, the projects are expected to be completed
and placed into service in the second half of 2016.
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 8,643 miles of
pipeline and 82 terminal and storage facilities that store and
distribute crude oil, refined products and specialty liquids. The
partnership’s combined system has approximately 91 million barrels of
storage capacity, and NuStar has operations in the United States,
Canada, Mexico, the Netherlands, including St. Eustatius in the
Caribbean, and the United Kingdom. For more information, visit NuStar
Energy L.P.'s Web site at www.nustarenergy.com.
PMI is the international group of companies of Petróleos Mexicanos. It
is responsible for trading crude oil, petroleum products and
petrochemicals worldwide, with operations in over 20 countries. PMI also
operates midstream assets in Mexico and the United States. PMI has
extensive long-term business relationships with major oil and midstream
companies around the world. www.pmi.com.mx
Source: NuStar Energy L.P.
NuStar Energy, L.P., San Antonio
Investors, Chris Russell, Vice
President,
Investor Relations: 210-918-3057
chris.russell@nustarenergy.com
or
Media,
Mary Rose Brown, Senior Vice President,
Administration: 210-918-2314
maryrose.brown@nustarenergy.com
Web
site: http://www.nustarenergy.com