La. rail facility eyed for crude oil storage
Written by William C. Vantuono, Editor-in-ChiefSan Antonio-based NuStar Energy L.P. has signed an agreement with two subsidiaries of Houston-based EOG Resources to construct a rail offloading facility in St. James, La., to service crude oil production and natural gas hydraulic fracturing (“fracking”) activity in the U.S.
The site will be able to store and transport the equivalent of 70,000 barrels of oil per day, according to Chicago-based Zacks Equity Research.
The rail project is slated to be completed in the first quarter of 2012, while the tanks are scheduled to come online in May.
NuStar subsidiary NuStar Logistics, which already owns one of the largest oil terminals in the region, negotiated the deal with EOG Resources Rail Yard (Louisiana) LLC and EOG Resources Marketing.
