Koch Pipeline Company and NuStar Logistics have agreed on a pipeline connection and capacity lease agreement that will give Koch Pipeline the future additional capacity to transport Eagle Ford Shale crude oil to Corpus Christi, Texas.
The project involves reactivation of NuStar’s earlier idled Pettus South Pipeline, which runs 60 miles from Pettus, Texas to Corpus Christi.
NuStar will operate the pipeline and 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.
Koch Pipeline and NuStar expect the project to be completed and in service in the second quarter of 2011.
The company said that the 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.