NuStar Energy LP (NYSE: NS) will be selling off its San Antonio refinery, allowing it to pay down debt, and the company will use some of the money to expand further into the Eagle Ford shale region, Fuel Fix reports.
The company plans to buy a crude oil pipeline and other assets from TexStar Midstream Services LP for $425 million. NuStar’s own refinery, which processes 14,500 barrels per day, will be sold, as will a terminal in Elmendorf and a pipeline connecting the terminal with the plant.
The refinery involved in the sale is something that the company bought out of bankruptcy back in April of 2011 for $41 million. NuStar has since invested $49 million to upgrade it.
The pipeline purchase ought to be finalized some time in early December, and NuStar is also acquiring some natural gas assets from TexStar, which should be completed by Q1, 2013.
Both the crude oil and natural gas assets will be merged with NuStar’s pipeline system in the area.
Currently, the crude oil system runs from LaSalle and Frio counties all the way to Live Oak County, transporting around 60,000 barrels of crude per day. With the acquisitions, it should rise to around 100,000 bpd.
NuStar also plans to add 5 storage terminals along the way through purchases.