Under the agreement, NuStar purchased crude oil pipeline system which consists of 225.3km of transport and gathering lines starting from LaSalle County and Frio County to Live Oak County in Texas, with a total capacity to supply 100,000 barrels per day (BPD) of crude oil.
The company is also purchasing five storage terminals situated along the pipeline system which together have a capacity of 643,400 barrels.
The five terminals are TexStar’s Gardendale terminal in LaSalle County, Highway 85 terminal in Frio County, Highway 97 and Highway 16 terminals in McMullen County, and its Oakville terminal in Live Oak County.
NuStar Energy president and CEO Curt Anastasio said the newly acquired crude oil assets will be integrated with the company’s existing pipeline and storage system in South Texas.
"It will also provide Eagle Ford crude producers with greater ability to move production to Corpus Christi, where they will have access to NuStar’s Corpus Christi storage and dock space that can be utilized for shipments to other markets," Anastasio said.
In addition to the acquisition, the company will purchase natural gas liquids (NGL) assets in Eagle Ford Shale Region from TexStar for a value of around $100m. Subject to closing conditions, the deal is expected to close in the first quarter of 2013.
