NuStar Energy Seeks Shipper Interest In Niobrara Falls Project

February 2013, Vol. 240 No. 2

NuStar Energy extended its Niobrara Falls Open Season to Feb. 15 as it assesses interest in firm priority space to transport crude petroleum from the Niobrara Shale near Platteville and Watkins, CO to Wichita Falls, TX. The Niobrara Falls Project would be capable of transporting Permian and Granite Wash crude petroleum delivered into NuStar’s Dixon, TX tank farm.

The proposed project would include construction of crude petroleum pipelines from gathering locations in the Niobrara Shale near Platteville and Watkins, CO to a tie-in point on NuStar’s existing 10-inch McKee, TX to Denver petroleum products pipeline. The NuStar Colorado 10-inch pipeline would be converted to crude oil service, reversed and connected with NuStar’s existing 14-inch Wichita Falls to McKee crude line, which would also be reversed.

The NuStar Colorado 10-inch line would have capacity of 70,000-75,000 bpd and the NuStar Wichita Falls 14-inch pipeline would have capacity of 125,000-130,000 bpd. Shippers would have the option to contract for storage at the origin points near Platteville and Watkins. Subject to sufficient commitments from shippers, necessary permits, regulatory and internal approvals, the reversed NuStar Wichita Falls 14-inch pipeline portion of the Niobrara Falls Project is expected to begin service on or about April 1 with full Niobrara Falls Project service expected to begin during the first quarter of 2014.
The proposed Niobrara Falls Project will likely connect to the Sunoco Logistics Partners Permian Express Phase I project and to the Basin System, both in Wichita Falls, for further continuous pipeline service to the Nederland/Beaumont, TX markets and/or the Cushing hub.