Agreement and Related Capital Investment Will be Immediately
Accretive to Earnings for NuStar;
Will Provide Opportunity for PMI to Move Greater Volumes and
Additional Grades of Naphtha More Efficiently and at a Lower Cost
SAN ANTONIO--(BUSINESS WIRE)--Apr. 10, 2015--
NuStar Energy L.P. (NYSE: NS) and PMI, an affiliate of Petróleos
Mexicanos (“Pemex”), announced today that the companies have expanded
operations in which NuStar transports and stores naphtha, a gasoline
blending component, for PMI. Under the terms of the 10-year agreement,
which extends a previous 10-year agreement between the two companies
that went into effect in 2005, naphtha produced at Pemex’s
Reynosa-Burgos Complex in northern Mexico is transported via the NuStar
Burgos-Valley pipeline system to NuStar’s terminal in Edinburg, Texas.
From Edinburg, the naphtha is delivered into Transmontaigne’s terminal
in Brownsville, Texas. NuStar invested in the construction of a new
50,000-barrel naphtha storage tank at the Edinburg Terminal to augment
the project’s original 80,000-barrel storage capacity, to accommodate
the additional grades and volumes of naphtha. The services under this
revised agreement, which also includes a slight increase in throughput
commitment from PMI, commenced on April 1, 2015.
The agreement and related capital investment provides a more efficient,
safe and economical method of delivery as it replaces truck deliveries
that were moving the naphtha from Mexico to Brownsville.
“PMI has always been an outstanding partner for NuStar, so we are very
pleased to expand operations through this latest contract with them
because it will benefit both companies,” said Brad Barron, president and
CEO of NuStar. “For a modest investment to construct an additional tank
and upgrade a few items on the system, NuStar is able to expand our
services to PMI and will continue to generate returns for NuStar and PMI
for the next 10 years.”
Barron noted that work continues on the previously announced joint
venture with PMI to transport propane from the US into Northern Mexico,
stating that he hopes to have an update on the JV in the very near
future.
PMI officials stated that they are confident in this new project and
that they look forward to continuing development of key infrastructure
that improves Pemex and Mexico’s energy performance. They also noted
that the transaction fosters the integration of the North American
energy markets.
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 81 terminal and storage facilities that store and
distribute crude oil, refined products and specialty liquids. The
partnership’s combined system has approximately 93 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: 210-918-3507
chris.russell@nustarenergy.com
or
Media,
Mary Rose Brown, Executive Vice President,
Administration:
210-918-2314
maryrose.brown@nustarenergy.com
Web
site: http://www.nustarenergy.com