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NuStar And Koch Pipeline Company Transporting Crude to Corpus Christi

Source: www.gulfoilandgas.com 7/19/2011, Location: North America

As part of an agreement with Koch Pipeline Company, L.P., NuStar Logistics has reactivated its Pettus South Pipeline to transport Eagle Ford Shale crude oil to Corpus Christi, Texas. “With the startup of this new capacity with NuStar, we are continuing to bring quick transportation solutions to Eagle Ford producers and to our customers in South Texas,” said Kim Penner, president of Koch Pipeline. “The NuStar line ties into our existing systems adding an immediate 30,000 barrels per day of capacity.”

The previously idled pipeline runs 60 miles from Pettus, Texas to Corpus Christi. NuStar is operating the pipeline. “This project is part of a larger strategy to create even greater logistical options for our customers in the Eagle Ford region,” said NuStar President and CEO Curt Anastasio. “The Pettus South Pipeline complements Koch’s expanded pipeline system in South Texas so it’s a win-win for both of our companies.”

In the past 13 months, Koch Pipeline has significantly increased its capabilities to move Eagle Ford production. In May 2010, Koch Pipeline completed projects to increase its crude oil and gas condensates transportation capacity by about 25,000 barrels per day. With Arrowhead Pipeline, L.P., Koch Pipeline added another 50,000 barrels per day of crude and condensate capacity from the western Eagle Ford counties.

Koch Pipeline will soon complete a project to expand delivery capability to the Flint Hills Resources Ingleside waterborne terminal. The company is also building a crude oil terminal in Helena, along with a new line from Helena to Pettus, where the company has an existing crude oil terminal. Another 60-mile line from Pettus to Corpus Christi has received final approval.

Koch Pipeline is the largest transporter of South Texas crude and operates about 540 miles of active crude oil transportation lines in Texas. The company also has ongoing relations with other crude distribution systems that further its ability to provide services in the Eagle Ford area. NuStar also has been working on other projects to expand and modify its pipeline and terminal infrastructure to transport and store even greater volumes of Eagle Ford Shale crude and condensate.

In April, NuStar and TexStar announced a letter of intent to develop a new pipeline system to transport Eagle Ford Shale crude and condensate to Corpus Christi. Then NuStar and Velocity Midstream Partners announced in June that they signed a letter of intent to develop a joint pipeline solution to transport west Eagle Ford Shale condensate from Velocity’s Gardendale Hub to NuStar’s North Beach Corpus Christi, Texas terminal facility.

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