NuStar Energyis proposing the construction of two pipelines in Colorado from the Niobrara Shale formation near Platteville and Watkins which would connect to the NuStar Crude Oil pipeline system near Denver and deliver the crude to the NuStar tank farm in Wichita Falls, Tex.
Specifically, NuStar said the proposed Niobrara Falls Project would include construction of new crude petroleum pipelines from gathering locations in the Niobrara Shale near Platteville and Watkins to a tie-in point on the NuStar's existing 10-inch McKee, Tex. to Denver petroleum products pipeline.
The San Antonio-based company said that the Niobrara Falls Project would also have the capability to transport Permian and Granite Wash crude petroleum delivered in NuStar's Dixon, Tex. tank farm for delivery to various destinations.
NuStar said the Niobrara Falls Project would also allow shippers the option to supply various refiners along the pipeline routes, including Suncor Energy's Denver refinery; Valero Energy's McKee, Tex. and Ardmore, Okla. refineries; and WRB refinery in Borger, Tex.
In addition, NuStar said that at Wichita Falls, shippers would have the option to access the Nederland/Beaumont, Tex. markets and the Cushing, Okla., via third party pipelines.
The NuStar Colorado 10-inch pipeline would be converted to crude oil service, reversed and connected with NuStar's existing 14-inch Wichita Falls, Tex. to McKee, Tex. crude oil pipeline which would also be reversed.
The company said its NuStar Colorado 10-inch pipeline would have an approximate capacity of 70,000 to 75,000 barrels a day, and the NuStar Wichita Falls 14-inch pipeline would have an approximate capacity of 125,000 to 130,000 barrels a day.
The company added that shippers would have the option to contract for storage at the origin points near Platteville and Watkins.
NuStar said it is expected the proposed Niobrara Falls Project would connect to the Sunoco Logistics Partners Permian Express Phase 1 project as Wichita Falls and to the Basin System at Wichita Falls for continuous pipeline service to the Nederland/Beaumont, Tex. markets
Howard Pankratz: 303-954-1939, hpankratz@denverpost.com or twitter.com/howardpankratz
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