NuStar +4.8% on long-term transport deal with Occidental Petroleum

NuStar Energy (NS +4.8%) signs a long-term agreement allowing Occidental Petroleum (OXY) to ship natural gas liquids on NuStar’s currently idled 200-mile pipeline between Mont Belvieu and Corpus Christi, Texas.

NS has begun work to reactivate the line, reverse its flow and convert it from refined products service to NGL service; the pipeline has capacity to move ~110K bbl/day.

The project is scheduled to be completed and in full operation in Q2 2015, although the pipeline may flow at reduced rates this year; once the line is in service, it is expected to generate ~$23M/year of incremental EBITDA for NS.

Comments (1)
  • Landsharks6
    , contributor
    Comments (155) | Send Message
    By shedding asphalt business & signing deal with Oxy. NS looks like its on its way back to growth as well as dividend.
    5 Feb 2014, 02:38 PM Reply Like
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