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NuStar & Koch move Cushing Crude Valero Ardmore -Flint Hills Corpus by Reactivate & Join Eagle Nort

Home Forums Refining Community Refinery News NuStar & Koch move Cushing Crude Valero Ardmore -Flint Hills Corpus by Reactivate & Join Eagle Nort

This topic contains 1 reply, has 1 voice, and was last updated by  Charles Randall 10 years, 11 months ago.

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  • #2477

    basil parmesan
    Participant

    NuStar to reactivate Eagle Ford oil pipeline as part of deal with Koch

    October 21, 2010  SAN ANTIONIO, TexasSan Antonio-based NuStar Energy LP will reactivate an idled 60-mile pipeline and lease it to Wichita, Kan.-based Koch Pipeline Co. LP to convey oil from the Eagle Ford shale formation to Corpus Christi refineries.
    The reactivation is part of an already-announced plan by Koch to transport more oil from the Eagle Ford shale to the Koch Flint Hills refinery at Corpus Christi, Texas.
    The Pettus South Pipeline extends from Pettus, in Goliad County, to Corpus Christi.
    NuStar Logistics, a NuStar Energy subsidiary, will operate the pipeline. Koch Pipeline will lease the capacity and combine it with its existing gathering systems to move increasing crude oil production in the Eagle Ford shale that crosses South Texas.
    NuStar Energy and Koch Pipeline expect the project to be completed and in service in the second quarter of 2011

     

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    Koch to transport Eagle Ford crude via NuStar’s now-idle Pettus South Pipeline
    October 18, 2010    Source: Koch
    Koch Pipeline Company and NuStar Logistics have agreed on a pipeline connection and capacity lease agreement that will give Koch Pipeline future additional capacity to transport Eagle Ford Shale crude oil to Corpus Christi, Texas. 

    The project involves reactivation of NuStar’s previously idled Pettus South Pipeline, which runs 60 miles from Pettus, Texas to Corpus Christi. NuStar will operate the pipeline; Koch Pipeline will lease the capacity and combine it with its existing gathering systems to move growing crude oil production from South Texas Eagle Ford Shale fields to Corpus Christi refineries and terminals. 

    “This agreement with NuStar is another step in our strategy to expand our pipeline capabilities in South Texas,” said Kim Penner, president of Koch Pipeline. “We expect to tie this line into our system within the next six to eight months, adding at least 30,000 barrels per day of new capacity. As Eagle Ford production grows, the line’s capacity can be increased to about 50,000 barrels per day

    “In addition, we are working on several more opportunities to increase pipeline capacity to the Corpus Christi refining center and Ingleside waterborne terminal,” Penner said. 

    This is an exciting opportunity because NuStar and Koch Pipeline have pipeline and gathering systems that are uniquely located to jointly develop a quick and economical solution to get the Eagle Ford crude oil into Corpus Christi to supply local refineries and other customers,” said NuStar President and CEO Curt Anastasio. “It is a win for the producers because they will soon have an effective means to transport their crude production; a win for the refiners because they will have access to another crude oil supply source; and of course a win for Koch Pipeline and NuStar based on the increased throughput in our systems. 

    “NuStar’s existing pipeline and terminal infrastructure in South Texas also provides the foundation to pursue and develop other logistics opportunities in the Eagle Ford Shale region,” Anastasio added. 

    Koch Pipeline and NuStar expect the project to be completed and in service in the second quarter of 2011.  Expanded activity in the Eagle Ford production formation has allowed Koch Pipeline’s customer Flint Hills Resources to receive more domestically produced crude at its Corpus Christi refinery. In May, Koch Pipeline completed projects that allowed it to increase its crude oil and gas condensates transportation capacity by about 25,000 barrels per day. 

    Koch Pipeline is building a line to expand delivery capability to Flint Hills Resources’ Ingleside waterborne terminal. In addition, the company is further increasing transportation capacity by 40,000 barrels per day from its existing system in the northern Eagle Ford counties. This increase will be final during the first half of 2011.  Last month, in conjunction with Arrowhead Pipeline, L.P., Koch Pipeline announced an agreement and joint tariff to add 50,000 barrels per day of crude and condensate capacity during 2011 from the western counties of the Eagle Ford. 

    Koch Pipeline is the largest transporter of South Texas crude and operates about 540 miles of active crude oil transportation lines in Texas. The company also has ongoing relations with other crude distribution systems that further its ability to provide services in this growing production area.

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    Valero refinery runs to Cushing storage
    6 October 2010 – TankStorage/Reuters

    The busy storage terminal hub of Cushing in Oklahoma, US, is to get a new customer.
    A Valero refinery in Ardmore, Oklahoma, will soon tap into cheap crude oil at the storage hub.

    Blueknight Energy Partners expects to complete its Eagle North pipeline reactivation project in the fourth quarter, connecting Valero Energy Corp’s Ardmore refinery with Cushing for the first time. The partnership is controlled by global oil trading giant Vitol

    Estimates say the 8-inch pipeline could carry up to 32,000 barrels per day of crude oil.

    The 90,000 bpd Ardmore refinery currently runs crude oil produced in Oklahoma as well as oil brought up from the coast of the Gulf of Mexico.

    An extension of TransCanada Corp’s Keystone pipeline to Cushing is due to start operations in early 2011.

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    UPDATE 1-Valero oil refinery to link to Cushing hub soon

     Tue Oct 5, 2010 4:39pm EDT
    * Eagle North pipeline to link Valero refinery to Cushing
    * Capacity may exceed 30,000 bpd -Reuters estimate
    * Added offtake capacity at Cushing could boost WTI prices (Adds industry comment on Oklahoma crude, paragraphs 3, 4)
    By Robert Campbell
    NEW YORK, Oct 5 (Reuters) – Valero’s Ardmore, Oklahoma refinery will soon start receiving cheap crude from the giant Cushing, Oklahoma storage hub, possibly easing a bottleneck that has distorted benchmark U.S. oil prices for years.
    Blueknight Energy Partners LP BKEP.PK expects to complete its Eagle North pipeline reactivation project in the fourth quarter, a Blueknight spokesman said.
    The line, which terminates in Ardmore, will allow Valero Energy Corp’s refinery there to source crude from Cushing for the first time, an industry source said. “Oklahoma crude prodcution is not going up and there are attractive discounts at Cushing so it would make sense for them (Valero) to buy from Cushing if possible,” said the source.
    Blueknight, controlled by global oil trading giant Vitol, declined to discuss the capacity or expected throughput of the pipeline, citing competitive concerns and regulatory constraints.
    An industry rule of thumb suggests the 8-inch pipeline could carry up to 32,000 barrels per day of crude oil, according to Reuters calculations. U.S. West Texas Intermediate crude oil futures CLc1, which have their delivery point at Cushing, have often traded at a substantial discount North Sea Brent due to a shortage of outbound pipeline capacity at Cushing.
    The 90,000 bpd Ardmore refinery currently runs crude oil produced in Oklahoma as well as oil brought up from the coast of the Gulf of Mexico, Valero spokesman Bill Day said.
    Anything that boosts offtake from Cushing will likely have an impact on the pricing structure of WTI but I’m not sure a 30,000 bpd line will offset the impact of all the Canadian barrels coming in,” said one U.S. crude oil trader.
    Growing Canadian oil production and the reversal of pipelines that once carried West Texas and Oklahoma crude oil to the upper Midwest have been blamed for the glut at Cushing.
    Any relief brought by Eagle North may be short-lived, however, as new inbound pipeline connections to Cushing are under construction and a proposed major outbound link announced on Tuesday by Enbridge Inc is probably years away from beginning operations.
    An extension of TransCanada Corp’s Keystone pipeline to Cushing is due to start operations in early 2011.

  • #5428

    Charles Randall
    Participant

    Here are few articles each with same basic info but different details on Nustar & Koch Reactivating Eagle North Pipeline to move backed up (often discounted to Brent Crude) to Valero Ardmore refinery & Flint Hills Corpus Christi Texas Refineries.  The 30-50MBD which will be in service 2011 will help but not offset all the Canadian Crude being dumped into Cushing by all completing P/L ‘s which are ahead of those outbound P/L’s leaving Cushing (like Enbridges) which has been delayed/years away from completing.
    Regards

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