NuStar to Further Expand Its Eagle Ford Crude Oil Pipeline System and Corpus Christi Terminal

  NuStar to Further Expand Its Eagle Ford Crude Oil Pipeline System and Corpus
  Christi Terminal

 Accretive Project involves NuStar expanding crude oil pipeline systems into
       Karnes County, Texas to serve ConocoPhillips and other producers

Business Wire

SAN ANTONIO -- December 13, 2012

NuStar Energy L.P. (NYSE: NS) has announced that it has entered into a
long-term Pipeline and Terminal Services Agreement with ConocoPhillips that
will allow expansion of NuStar’s South Texas Crude Oil Pipeline System. The
agreement will include a pipeline expansion project for NuStar that will allow
NuStar to serve ConocoPhillips’ growing production in the Eagle Ford Shale
play, and new pipeline and terminal facilities will provide Eagle Ford
producers with a cost-effective transportation alternative for their growing
production.

“We are excited to announce another major, accretive expansion in the Eagle
Ford region so soon after the acquisition of TexStar’s crude pipeline assets
in the Eagle Ford region as it further expands the area our pipeline system
can serve,” said Curt Anastasio, President and CEO of NuStar. “This expansion,
backed by major producers like ConocoPhillips, cements NuStar’s position as a
key logistics provider for Eagle Ford Shale play. We are fortunate to have
extensive pipeline and terminal assets already in operation throughout the
region with the capacity to easily support an expansion of this size and help
support the incredible production growth taking place in the Eagle Ford Shale
play.”

A new NuStar pipeline will originate at a 100,000 barrel NuStar terminal to be
constructed near Pawnee, Texas, and will connect to NuStar’s existing 12-inch
pipeline system between Pettus, Texas and Three Rivers, Texas.NuStar will
connect its existing 12-inch pipeline to its Oakville, Texas Terminal for
crude delivery to the NuStar North Beach Terminal.The crude will be
transported to Corpus Christi via NuStar’s existing 16-inch pipeline, and via
new pipeline connections that will be built to Corpus Christi
refineries.NuStar will also provide truck-receiving facilities at the new
terminal near Pawnee, Texas and at its recently completed terminal in
Oakville.

In addition, NuStar is already constructing a new ship dock in Corpus Christi
that will support the North Beach Terminal under a long-term lease with the
Port of Corpus Christi. The private dock facility and refinery connections
will enable NuStar to continue to expand its pipeline systems to meet the
production growth taking place in South Texas.The pipeline expansion project
will be completed during the fourth quarter of 2013, while the new dock
facilities are expected to be complete in the first quarter of 2014.

Anastasio stated that NuStar expects to invest approximately $100 million to
$120 million for these expansions, which are backed by a 10-year throughput
commitment. According to Anastasio, the projects are expected to generate
approximately $15 million in incremental, annual EBITDA once fully
implemented. He noted that while the expansions would generate some EBITDA in
2013, the vast majority will be earned in 2014 and beyond.

About NuStar Energy

NuStar Energy L.P., a publicly traded master limited partnership based in San
Antonio, is one of the largest independent liquids terminal and pipeline
operators in the nation. NuStar currently has 8,433 miles of pipeline; 82
terminal and storage facilities that store and distribute crude oil, refined
products and specialty liquids; a fuels refinery with a throughput capacity of
14,500 barrels per day; and 50% ownership in two asphalt refineries with a
combined throughput capacity of 104,000 barrels per day. The Partnership’s
combined system has approximately 94 million barrels of storage capacity, and
NuStar has operations in the United States, Canada, Mexico, the Netherlands,
including St. Eustatius in the Caribbean, the United Kingdom and Turkey. For
more information, visit NuStar Energy L.P.'s Web site at www.nustarenergy.com.

Contact:

NuStar Energy, L.P., San Antonio
Investors, Chris Russell, Vice President
Investor Relations: 210-918-3507
or
Media, Mary Rose Brown, Executive Vice President,
Corporate Communications: 210-918-2314
Web site: http://www.nustarenergy.com
 
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