NuStar announces Niobrara shale-to-Texas crude pipeline

NuStar Energy LP affiliate NuStar Logistics LP launched a binding open season to assess shipper interest in firm priority space on its Niobrara Falls Project transporting crude oil from the Niobrara shale near Platteville and Watkins, Colo., to Wichita Falls, Tex. The pipeline would deliver to various facilities along the way including Suncor Energy's Denver refinery; Valero Energy's McKee, Tex., and Ardmore, Okla., refineries; and WRB's Borger, Tex., refinery.

NuStar expects that at Wichita Falls shippers would have the option to access the Nederland-Beaumont, Tex. market and the Cushing hub via third-party pipelines via connections at Wichita Falls to both Sunoco Logistics Partners LP’s Permian Express Phase I project and the Basin System. The pipeline would also be able to transport Granite Wash and Permian basin crude to NuStar's Dixon, Tex., tank farm.

Niobrara Falls would include construction of crude pipelines from gathering locations in Colorado to a tie-in point on NuStar's existing 10-in. OD McKee-to-Denver petroleum products pipeline. The NuStar Colorado 10-in. pipeline would be converted to crude oil service, reversed, and connected with NuStar's existing 14-in. OD Wichita Falls-to-McKee crude pipeline, which would also be reversed. The NuStar Colorado 10-in. pipeline would have 70,000-75,000 b/d capacity, and the NuStar Wichita Falls 14-in. pipeline would carry 125,000-130,000 b/d. Shippers would have the option to contract for storage at the origin points near Platteville and Watkins.

Subject to sufficient commitments from shippers, necessary permits, and regulatory and internal approvals, NuStar expects the Wichita Falls pipeline portion of the Niobrara Falls project to begin service second-quarter 2013, with full service beginning first-quarter 2014.

The open season will end Nov. 15. Commitment terms of 5, 7, or 10 years are available.

Oneok Partners LP announced its Bakken-to-Cushing Bakken Crude Express Pipeline earlier this year, noting that its route would position it well to transport Niobrara crude as well as barrels from the Bakken shale. The company expects early-2015 completion (OGJ Online, Apr. 9, 2012).

Contact Christopher E. Smith at chriss@ogjonline.com.

Related Articles

Texas: Energy adds Bone Spring/Avalon acreage

01/07/2011 Energen Resources Corp., Birmingham, Ala., has purchased 3-year leases on 17,000 net acres in the Bone Spring and Avalon shale trends in the Permia...

NETL: Carbon dioxide for EOR provides model for pipeline system

02/03/2011 A private sector model with a state-based regulatory system, instead of one that is federal, will “most likely result in a robust” US c...

Brent tops WTI as benchmark

02/14/2011 As the international benchmark other crudes are priced against, “West Texas Intermediate is dead, long live North Sea Brent,” said anal...

ExxonMobil: Oil to account for most new production in 5 years

03/17/2011 ExxonMobil Corp. expects to add nearly 1.4 million boe/d net to its production by 2016, and oil will account for 80% of that new production, compan...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected