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

|About: NuStar Energy L.P. (NS)|By:, SA News Editor

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.