NuStar Crude Oil Pipeline LP, a subsidiary of San
Antonio-based publicly traded partnership
NuStar Energy LP
), has got sufficient binding commitments from shippers for the
first phase of its South Texas-based Crude Oil Pipeline System
Project. The partnership, while announcing this, added that all
the committed spaces for Phase 1 of the development have been
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However, in spite of continuous shippers' interest in Phase 2 of
the project, NuStar will assess the feasibility of the phase
Earlier, NuStar reported that the South Texas System Project will
be operating in two phases. In Phase 1, the throughput capacity
of the pipeline system will be increased by roughly 35,000
barrels per day. However, the committed shippers can use the
pipeline only from the third quarter of 2014.
NuStar reveals that Phase 2 will be available to shippers in the
first quarter of 2015 with another additional capacity of 65,000
barrels per day. However, the second phase of the pipeline
project will be subject to the partnership's evaluation result.
The South Texas Crude Oil Pipeline System is now carrying crude
oil from Frio, McMullen and La Salle-based terminals to NuStar's
facility located in Corpus Christi North Beach. The partnership
added that the throughput capacity of the pipeline system will be
increased by roughly 100,000 barrels per day on completion of
both the phases.
San Antonio, TX-based NuStar is a master limited partnership
(MLP) that engages in the transportation and storage of crude oil
as well as refined products in the U.S., the Netherlands
Antilles, Canada, Mexico and the U.K.
NuStar currently holds a Zacks Rank #3 (Hold), implying that it
is expected to perform in line with the broader U.S. equity
market over the next one to three months.
Meanwhile, one can look at oil and gas production pipeline MLPs
Energy Transfer Partners LP
Kinder Morgan Energy Partners LP
Pioneer Southwest Energy Partners LP
) that offer value. All the partnerships sport a Zacks Rank #2