NuStar has started working to reactive the line, reverse its flow and convert it from refined products service to NGL service, while the pipeline holds the capacity to transport around 110,000 barrels per day.
Oxy plans to use majority of the line’s capacity to supply NGLs through an interconnect with an Oxy pipeline to the Oxy Ingleside Energy Center export facility situated in Ingleside, Texas, at the site of the former Naval base purchased by the company in 2012.
The pipeline project is expected to be completed and in full operation in the second quarter of 2015.
NuStar Energy president and CEO Brad Barron said the Mont Belvieu-to-Corpus Christi pipeline is one of the key pipelines in company’s South Texas system.
"The agreement will begin generating distributable cash flow for NuStar in April of this year, and we look forward to exploring opportunities with Oxy and other companies to meet their NGL transportation needs," Barron added.
