NuStar, EOG Resources enter agreement to build Louisiana rail offloading facility

NuStar Logistics, EOG Resources Rail Yard (Louisiana) LLC and EOG Resources Marketing, Inc., have entered into a definitive agreement to jointly develop, build and own a 70,000-barrel-per-day unit train offloading facility at NuStar's crude oil terminal in St. James, La. The project will facilitate movement and storage of crude oil production from the Bakken, Eagle Ford and other developing shale plays in the United States. NuStar's 8-million-barrel terminal is one of the largest in the growing St. James crude oil hub and has interconnectivity to major crude infrastructure including major onshore and offshore pipeline systems, as well as marine, truck and rail access. The new project will include the addition of new rail and unit train unloading facilities. Two new storage tanks with a combined 360,000 barrels of capacity will also be built in conjunction with the project. The new facility will be equipped to receive at least one 70,000-barrel train per day and will have enough track and other infrastructure to stage an additional train to await offloading. The rail project is expected to be completed in the first quarter of 2012 and the tanks are expected to be completed and in service in May 2012. "This project will give our customers much greater ability to move and store production from very significant crude discoveries throughout the U.S.," 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. And given EOG's vast resources and leadership in our industry, they are the ideal partner for us in this effort." "We are pleased to be a partner in the new St. James unloading facility that will provide diverse market opportunities for our crude. 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, EOG Resources, Inc.