NuStar, EOG Resources to build 70,000BPD train offloading facility in Louisiana to transport shale crude

By Phaedra Friend Troy

NuStar Logistics (NYSE:NS) and EOG Resources (NYSE:EOG) have entered into a definitive agreement to jointly develop and own a 70,000-barrel-a-day unit train offloading facility in Louisiana to support crude oil transport from various US shale plays.

The rail offloading facility will be built at NuStar's crude oil terminal in St. James, Louisiana, facilitating movement and storage of crude oil production from the Bakken and Eagle Ford Shales, as well as other emerging oil shale plays in the US.

The 8-million-barrel St. James crude oil terminal has interconnectivity to major crude infrastructure, including onshore and offshore pipeline systems, as well as marine, truck and rail access. 

“This project will give our customers much greater ability to move and store production from very significant crude discoveries throughout the US,” said Curt Anastasio, president and CEO of NuStar. “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.”

The new project will include rail and unit train unloading facilities, as well as two new storage tanks with a combined capacity of 360,000 barrels of oil. In addition to the 70,000-barrel-a-day capacity, the crude oil receiving terminal will include enough track and other infrastructure to stage another train to await offloading. 

While the rail project is expected to be completed in the first quarter of 2012, the storage tanks are scheduled for completion in May 2012.

"Given the price differentials that exist within the marketplace today, we view this project as an important part of our crude-by-rail strategy,” said Mark Papa, chairman and CEO of EOG Resources.

Rail is emerging as a crude oil transport solution for various shale plays, with multiple projects started in the Bakken Shale.

Sign up for PennEnergy's eNewsletters

For Email Newsletters you can trust

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs