NuStar launches open season for Permian Crude System expansion

NuStar Energy LP has launched a binding open season for a capacity expansion of its Midland Trunkline within the NuStar Permian Crude System.

NuStar is proposing to expand the capacity of its 20-in. Midland Trunkline that runs from its Stanton Terminal to Midland Junction by adding pump upgrades at the Stanton Terminal. The expansion would offer 60,000 b/d of such expanded capacity to the EPIC pipeline at Midland Junction. Up to 90% of the expanded capacity is being offered to shippers making long-term, ship-or-pay commitments, with at least 10% available for walk-up shippers. The project is expected to be in service in first-quarter 2020.

Since its acquisition in May 2017 from Navigator Energy Services LLC, NuStar’s Permian Crude System throughput has grown by 233%. In 2019, NuStar expanded its capacity to 560,000 b/d from 460,000 b/d and added a total 34 additional well connections. NuStar moved an average of 416,000 b/d in October. With November nominations of 436,000 b/d, NuStar expects to exit 2019 with throughput around 450,000 b/d.

Shippers that execute transportation services agreements during the open season will have the option to elect priority transportation rights on the expanded capacity. The open season runs until 5:00 pm CST on Dec. 20.