From The Houston Chronicle

San Antonio pipeline operator NuStar Energy received the first shipment of Permian Basin crude oil at the company’s Corpus Christi export terminal.

NuStar recently completed work connecting its Corpus Christi North Beach Export Terminal to the Cactus II Pipeline, a Permian Basin to Gulf Coast project developed by Houston-based Plains All American Pipeline LP.

After being transported more than 500 miles, the Permian Basin crude oil is being stored in storage tanks at NuStar’s facility where company officials said it will be loaded onto a tanker for export.

NuStar is working to connect the export terminal to two more Permian Basin to Corpus Christi pipelines that are still under construction.

“We are excited to have these connections completed and we are even more excited that we will soon be the first in the Port of Corpus Christi to export these barrels transported to South Texas via one of three large Permian long-haul pipeline projects,” NuStar CEO Brad Barron said in a statement.

The pipeline build out comes at a time when the Port of Corpus Christi is widening and deepening the ship channel and the South Texas waterway is expected to become the largest crude oil export hub in the United States within the next five years.

NuStar has four docks at the company’s Corpus Christi North Beach Export Terminal. Two of those docks can accommodate Suezmax tankers capable of hauling 1 million barrels of crude oil in a single shipment.

“We continue to believe that the biggest impact from the growth in the Permian Basin on the horizon is the growth in Gulf Coast crude exports, particularly from the Port of Corpus Christi, and with our existing pipeline and terminal operations in South Texas and Corpus Christi we are uniquely positioned to play a major role in getting more crude to export markets,” Barron added.

Port of Corpus Christi CEO Sean Strawbridge told the Houston Chronicle that NuStar’s project will help to boost exports in the region.

“We commend NuStar for their record-breaking time in connecting their pipeline to the Plains All American Cactus II line,” Strawbridge said. “With their North Beach storage and marine terminal facilities, NuStar is well positioned as a major outlet for crude exports from Corpus Christi.”


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