Anastasio

NuStar Energy LP and Valero Energy Corp. have struck an agreement for NuStar to modify existing sections of its South Texas pipeline system and build new sections to transport Eagle Ford and other crude oils. NuStar will reverse an eight-inch diameter refined products pipeline that currently runs from Corpus Christi to Three Rivers and will convert it to crude service. The pipeline will provide capacity to transport Eagle Ford crude and condensate to Valero’s Corpus Christi refinery; the line is expected to be in full service by the end of September. NuStar will also construct 55 miles of new 12-inch diameter pipeline that will connect to existing pipeline segments to move crude from Corpus Christi to Valero’s Three Rivers refinery. This system is expected to be in service by the second quarter of 2012. “With the growing production from the Eagle Ford region, NuStar is in the unique position to provide Valero and our other customers with quick transportation solutions given the fact that we have hundreds of miles of existing pipeline running from that region into Corpus Christi, where it can be refined or transported to other locations,” said NuStar CEO Curt Anastasio.