NuStar Logistics LP, an affiliate of NuStar Energy LP, is holding a binding open season for firm priority space to transport crude petroleum from the Niobrara Shale near Platteville and Watkins, CO, to Wichita Falls, TX.
NuStar’s Niobrara Falls Project would also have the capability to transport Permian and Granite Wash crude petroleum delivered into the company’s Dixon, TX, tank farm for delivery to various destinations. The project would allow shippers the option to supply refiners along the pipeline routes, including Suncor Energy’s Denver refinery; Valero Energy’s McKee, TX, and Ardmore, OK, refineries; and WRB’s refinery in Borger, TX, NuStar said. The company also expects that shippers would have the option at Wichita Falls to access the Nederland-Beaumont, TX, markets and/or the Cushing hub via third-party pipelines.
Plans for the project include construction of crude petroleum pipelines from gathering locations in the Niobrara near Platteville and Watkins to a tie-in point on NuStar’s existing McKee, TX to Denver petroleum products pipeline, which would be converted to crude oil service, reversed and connected with NuStar’s existing Wichita Falls to McKee crude oil pipeline, which would also be reversed.
The Colorado pipeline would have capacity of 70,000-75,000 b/d, and the Wichita Falls pipeline would have capacity of 125,000-130,000 b/d. Shippers would have the option to contract for storage at the origin points near Platteville and Watkins.
Subject to sufficient commitments from shippers, necessary permits, regulatory and internal approvals, the reversed Wichita Falls pipeline portion of the project is expected to begin service by April 1, with full Niobrara Falls Project service expected to begin around 1Q2014.
The open season will end at noon CST on Nov. 15. Commitment terms of five, seven or 10 years are available.
San Antonio-based NuStar Energy owns 8,433 miles of pipeline and 84 terminal and storage facilities. The partnership’s system has 96 million bbl of storage capacity.
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