NuStar Energy to expand capacity of Permian crude system

By Patrick C. Miller | January 16, 2018

San Antonio-based NuStar Energy LP announced the start of a binding open season for a second capacity expansion of its Permian Basin crude transportation and storage system.

According to NuStar, oil throughput volumes are approaching its system’s capacity. The company said the expansion will provide shippers with additional transportation capacity to reach multiple downstream markets through interconnects at Colorado City, Texas. The open season began January 9th and will run for at least 30 days.

NuStar’s Permian Crude System includes about 625 miles of crude transmission and gathering lines, spanning Borden, Howard, Martin and Midland counties with delivery points into Midland, Colorado City and Big Spring, Texas.

The second NuStar Permian Crude System expansion is expected to consist of three phased-in projects, which include the Big Spring South Inlet, the Colorado City Mainline Expansion and the County Line Loop.

Once completed, the projects are expected to provide approximately 70,000 barrels per day of additional capacity on the NuStar Permian Crude System. Ninety percent of the additional capacity will be available for volume commitments during the open season.

Under the second system expansion, potential shippers can make volume commitments and sign a transportation services agreement (TSA) from the designated origin point segments to NuStar’s Colorado City terminal at tiered-volume committed rates.

Subject to the limitations included in the TSA, shippers that execute an agreement during the open season will have the option of firm transportation rights on NuStar’s Permian Crude System during periods of pro-rationing for movements of shippers’ volume commitments.

NuStar Energy is an independent liquids terminal and pipeline operator with more than 9,300 miles of pipeline and 81 terminal and storage facilities for oil, refined products and specialty liquids. It has operations in the U.S., Canada, Mexico, the Netherlands, the Caribbean and the United Kingdom.

The notice of binding open season is available on the NuStar Energy website at www.nustarenergy.com.