NuStar, EOG Resources Announce Agreement to Build Rail Offloading Facility in Louisiana to Allow Expanded Transportation and Storage of Shale Play Crudes
NuStar Logistics, EOG Resources Rail Yard (Louisiana) LLC and EOG
Resources Marketing, Inc. (both subsidiaries of EOG Resources, Inc.)
have entered into a definitive agreement to jointly develop, build and
own a 70,000-barrel-per-day unit train offloading facility at NuStar′s
crude oil terminal in St. James, La. The project will facilitate
movement and storage of crude oil production from the Bakken, Eagle Ford
and other developing shale plays in the United States.
NuStar′s 8-million-barrel terminal is one of the largest in the growing
St. James crude oil hub and has interconnectivity to major crude
infrastructure including major onshore and offshore pipeline systems, as
well as marine, truck and rail access. The new project will include the
addition of new rail and unit train unloading facilities. Two new
storage tanks with a combined 360,000 barrels of capacity will also be
built in conjunction with the project. The new facility will be equipped
to receive at least one 70,000-barrel train per day and will have enough
track and other infrastructure to stage an additional train to await
offloading. The rail project is expected to be completed in the first
quarter of 2012, and the tanks are expected to be completed and in
service in May 2012.
'This project will give our customers much greater ability to move and
store production from very significant crude discoveries throughout the
U.S.,? said Curt Anastasio, president and CEO of NuStar. 'Our St. James
terminal is ideally situated in a major crude oil hub and has access to
all modes of transportation to effectively get the crude to any number
of markets. And given EOG′s vast resources and leadership in our
industry, they are the ideal partner for us in this effort.?
'We are pleased to be a partner in the new St. James unloading facility
that will provide diverse market opportunities for our crude. Given the
price differentials that exist within the marketplace today, we view
this project as an important part of our crude-by-rail strategy,? said
Mark G. Papa, Chairman and Chief Executive Officer, EOG Resources, Inc.
About NuStar
NuStar Energy L.P. is a publicly traded, limited partnership based in
San Antonio, with 8,417 miles of pipeline; 90 terminal and storage
facilities that store and distribute crude oil, refined products and
specialty liquids; and two asphalt refineries and a fuels refinery with
a combined throughput capacity of 118,500 barrels per day. The
partnership's combined system has over 94 million barrels of storage
capacity. One of the largest asphalt refiners and marketers in the U.S.
and the second largest independent liquids terminal operator in the
nation, NuStar has operations in the United States, Canada, Mexico, the
Netherlands, including St. Eustatius in the Caribbean, the United
Kingdom and Turkey. For more information, visit NuStar Energy L.P.'s Web
site at www.nustarenergy.com.
About EOG Resources, Inc.
EOG Resources, Inc. is one of the largest independent (non-integrated)
oil and natural gas companies in the United States with proved reserves
in the United States, Canada, Trinidad, the United Kingdom and China.
EOG Resources, Inc. is listed on the New York Stock Exchange and is
traded under the ticker symbol 'EOG.?
NuStar Energy
Mary Rose Brown, 210-918-2314
maryrose.brown@nustarenergy.com
or
EOG
Resources, Inc.
K Leonard, 713-571-3870
k_leonard@eogresources.com
