San Antonio-based NuStar Logistics and two EOG Resources Inc. subsidiaries have formed a joint venture to develop, build and own a 70,000-barrel-per day train offloading facility at NuStar’s crude oil terminal in St. James, La.
The price of the project was not disclosed.
The facility will make it easier to move and store crude oil from the Bakken, Eagle Ford and other developing shale plays in the United States, according to the joint venture partners.
The NuStar terminal, with a capacity of 8 million barrels, is one of the largest in the growing St. James crude oil hub and is connected to onshore and offshore pipelines. The terminal also has marine, truck and rail access.
The new facility will include a new rail and unit train unloading facilities and two new storage tanks with a combined capacity of 360,000 barrels. It will be able to handle at least one train carrying 70,000 barrels of oil every day with enough track and infrastructure for another train to park while waiting to offload its crude.
The rail project is expected to be completed in the first quarter of 2012, with the tanks expected to be completed and in service in May.
“This project will give our customers much greater ability to move and store production from very significant crude discoveries throughout the U.S.,” Curt Anastasio, president and chief executive of NuStar, said in a news release.
“Our St. James terminal is ideally situated in a major crude oil hub and has access to all modes of transportation to effectively get the crude to any number of markets. And given EOG’s vast resources and leadership in our industry, they are the ideal partner for us in this effort,” Anastasio said.
Houston-based EOG Resources is one of the largest independent oil and natural gas companies in the country and its stock is listed on the New York Stock Exchange.