NuStar, PMI team on LP gas pipeline infrastructure project

NuStar Energy LP and PMI, an affiliate of Pemex, plan to develop new pipeline infrastructure to transport liquefied petroleum gases and refined products from the United States into northern Mexico to meet the region’s growing demand for these products.

Under the proposal, the companies will jointly fund construction of new pipeline and storage assets, and NuStar would manage their construction and operation. LP gases and refined products will be delivered from Mont Belvieu and Corpus Christi, Texas, to Nuevo Laredo and Burgos-Reynosa, Mexico. The new pipeline and terminal facilities will be integrated with NuStar’s existing pipeline infrastructure, and the project will be supported by a throughput commitment from PMI.

The projects are expected to be completed and placed into service in the second half of 2016, according to a press release announcing the deal.