NuStar completes three projects to boost crude oil export into Mexico

NuStar Energy has completed three pipeline projects that will help increase the export capacity of Permian crude oil to Corpus Christi and refined products into northern Mexico.

The company completed its WTI export project’s second stage, which is a new eight-mile, 30in pipeline built to move crude oil from Taft in Texas to NuStar’s Corpus Christi terminal.

At the Corpus Christi terminal, the company is constructing additional storage to increase the total capacity to 3.9 million barrels. The 600,000 barrels of added storage will be completed in December.

Work on connecting the existing 16in pipeline in south Texas to the Plains Cactus II pipeline was also completed. The project involves transport of WTI volumes from the Permian Basin to south Texas.

NuStar president and CEO Brad Barron said: “We are very excited about the continued growth of our South Texas Crude System, which is once again experiencing throughput at near the historically high levels we saw in the Eagle Ford’s heyday in 2015, and the increased utilisation of our Corpus Christi export terminal, which is now handling the leading edge of the impending wave of Permian long-haul crude oil.

“And we expect continued growth for both Permian and Eagle Ford barrels going forward.”

NuStar also expanded Valley Pipeline System in south Texas from 45,000bpd to approximately 90,000bpd. It has already started transporting volumes from Corpus Christi to the Rio Grande Valley and Northern Mexico.

The reactivation of the existing 11-mile, 8in saw NuStar transport diesel into northern Mexico.

The expansion is according to the contract between NuStar and Valero to transport refined products from Valero’s Corpus Christi and Three Rivers refineries.