NuStar Logistics and TexStar Midstream Services have signed a letter of intent to develop a new pipeline system to transport Eagle Ford shale crude and condensate to Corpus Christi, Texas, US.

TexStar will build and operate a new 65-mile pipeline that will have the capacity to move 120,000 barrels per day of crude and condensate from Frio County to Three Rivers.

TexStar will build at least two truck unloading facilities, which will be located along the pipeline to gather crude oil produced in Atascosa, Frio, LaSalle, McMullen, and Live Oak counties.

At Three Rivers, the TexStar pipeline will be interconnected with a new storage facility to be constructed by NuStar.

The storage facility will be connected to NuStar’s existing 16-inch pipeline that will have the capacity to transport 200,000 barrels per day into NuStar’s Corpus Christi North Beach terminal.

The terminal has approximately 2 million barrels of storage capacity, and the Port of Corpus Christi Authority recently approved a land lease option agreement for 15 acres contiguous to the existing property, which will provide terminal expansion capabilities.

The companies anticipate to complete construction and begin service on the projects in the second quarter of 2012.