NuStar Energy LP is expanding its South Texas Crude Oil Pipeline System with the support of a long-term pipeline and terminal services agreement recently struck with ConocoPhillips, the partnership said Thursday.

The agreement include a pipeline expansion that will allow NuStar to serve ConocoPhillips’ growing production in the Eagle Ford Shale. New pipeline and terminal facilities will provide Eagle Ford producers with a cost-effective transportation alternative for their growing production, NuStar said.

NuStar recently acquired TexStar’s crude pipeline assets in the Eagle Ford region (see Shale Daily, Nov. 9).

“This expansion, backed by major producers like ConocoPhillips, cements NuStar’s position as a key logistics provider for Eagle Ford Shale play,” said CEO Curt Anastasio. “We are fortunate to have extensive pipeline and terminal assets already in operation throughout the region with the capacity to easily support an expansion of this size and help support the incredible production growth taking place in the Eagle Ford Shale play.”

A new NuStar pipeline will originate at a 100,000 bbl NuStar terminal to be constructed near Pawnee, TX, and will connect to the partnership’s existing 12-inch diameter pipeline system between Pettus and Three Rivers, TX. NuStar will connect its existing 12-inch diameter pipeline to its Oakville, TX, Terminal for crude delivery to the NuStar North Beach Terminal.

Crude will be transported to Corpus Christi via NuStar’s existing 16-inch diameter pipeline and via new pipeline connections to be built to Corpus Christi refineries. The partnership will also provide truck-receiving facilities at the new terminal near Pawnee and at its recently completed terminal in Oakville.

NuStar is constructing a new ship dock in Corpus Christi to support the North Beach Terminal under a long-term lease with the Port of Corpus Christi. The private dock facility and refinery connections will enable NuStar to continue to expand its pipeline systems to meet the production growth taking place in South Texas. The pipeline expansion project will be completed during the fourth quarter of 2013, while the new dock facilities are expected to be complete in the first quarter of 2014.