NuStar Energy L.P. (ticker: NS) has started its binding open season involving a second capacity expansion of its Permian crude system. The Permian Crude System Expansion No. Two will expand upon the system’s current capacity. Certain destinations along the company’s delivery system have been approaching capacity and the proposed expansion should alleviate such problems, the company said.
NuStar Energy Permian System Expansion
The expansion is currently expected to consist of three phased-in expansion projects, including the Big Spring South Inlet, the Colorado City Mainline Expansion and the 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% of such additional capacity will be available for volume commitments during the open season.
Under 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, Texas Terminal at tiered-volume committed rates.
NuStar’s Permian crude system currently consists of approximately 625 miles of crude transmission and gathering lines, spanning Borden, Howard, Martin, and Midland Counties with delivery points into Midland, Colorado City, and Big Spring, Texas.
The open season commences on Jan. 9, 2018 at noon CST and will extend for at least 30 days. The Notice of Binding Open Season is available on the NuStar Energy L.P. website at www.nustarenergy.com.
