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NuStar to expand Permian crude system capacity

Published by
Hydrocarbon Engineering,

NuStar Energy has commenced its binding open season, which will include a second capacity expansion of its Permian crude system.

The open season started on 9 January and will run for at least 30 days. With crude oil throughput volumes to certain destinations on NuStar’s Permian crude system approaching capacity, the NuStar Permian crude system’s second expansion will provide shippers with additional transportation capacity capable of reaching multiple downstream markets via interconnects in Colorado City, Texas, US.

The second expansion is currently expected to consist of three phased-in projects, including: Big Spring South Inlet; Colorado City Mainline Expansion; and County Line Loop. Once completed, these projects are expected to provide approximately 70 000 bpd of additional capacity on the Permian crude system, of which 90% will be available for volume commitments throughout the open season.

During the open season, potential shippers will have the opportunity to make volume commitments and sign a transportation services agreement (TSA) from designated origin point segments to NuStar’s Colorado City terminal at tiered-volume committed rates. Subject to the limitations outlined in the TSA, shippers that execute a TSA during the open season will also have the option to elect firm transportation rights on NuStar’s Permian crude system during periods of prorationing for those movements for which shippers have made volume commitments.

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