NuStar and EOG, an oil and natural gas company, have agreed to jointly develop and own a 70,000 barrel-a-day unit train to help transport and store oil produced in the Eagle Ford region of the US.
The construction will also include two new storage tanks that will have a total capacity of 360,000 barrels.
The train will be based at NuStar’s 8 million barrel St James’ terminal which has links to oil infrastructure such as onshore and offshore pipelines and truck and rail access.
The existing facility will be developed to include a rail and unit train unloading facilities and is expected to be finished by the first quarter of 2012, coming into service in May.
‘Given the price differentials that exist within the marketplace today, we view this project as an important part of our crude-by-rail strategy,’ says Mark Papa, CEO of EOG.