A second capacity expansion to move more Permian Basin crude oil to multiple markets has been launched by NuStar Energy Inc.
The binding open season, to be held at least through early February, would test support to expand the system operated by NuStar Permian Transportation and Storage LLC. The system runs about 25 miles across West Texas in Borden, Howard, Martin and Midland counties, with delivery points into Midland, Colorado City and Big Spring.
Oil throughput volumes to some destinations are approaching capacity, said management. The second expansion would add capacity capable of reaching several shippers through Colorado City interconnects.
The expansion could involve three phased-in expansion projects, the Big Spring South Inlet, Colorado City Mainline Expansion and County Line Loop. Once completed, the projects could provide 70,000 b/d of additional capacity on the system, with 90% available for volume commitments during the open season, which launched on Tuesday (Jan. 9).
NuStar, which already was active in the Eagle Ford Shale, entered the Permian last spring with its takeover of Navigator Energy Services LLC for $1.475 billion. Navigator’s West Texas assets in the Midland sub-basin included 500 miles of oil mainline transportation pipelines with 74,000 b/d, ship-or-pay volume commitments and deliverability of 412,000 b/d through multiple interconnects.
NuStar, whose operations are spread across North America and overseas, today has more than 9,300 miles of pipeline and 81 terminal and storage facilities, with a combined system of more than 96 million bbl of storage capacity.
More information about NuStar’s Permian open season is available on the NuStar website or by contacting Megan Acker, senior manager-business development, at (210) 918-2000.