NuStar Energy LP, the second-largest independent liquids terminal operator in the U.S., expects in August to be able to start shipping crude oil from a converted dock at its St. James, Louisiana, site.
The dock, which has the ability to load vessels weighing about 100,000 deadweight tons, was converted to an export dock so crude transported to Louisiana by rail may be shipped out of the area, according to the company. Modifications were made so the dock can load both crude and fuel oil.
The San Antonio-based company is increasing rail unloading, storage and dock capacity in St. James as production booms in Canada and North Dakota. An additional 799,000 barrels a day of output in those areas is projected to come online in 2013 and 2014, according to the Canadian Association of Petroleum Producers and the U.S. Energy Information Administration.
A second train terminal at St. James is expected to come online in the fourth quarter of this year and may offload heavy Canadian oil, according to the company. Contracts that are signed for the terminal may also include commitments for shipping and storage.
Crude oil shipped from the converted dock may be headed for a number of destinations.
“We do not control the destination of product from our terminal and our customers have not provided us information on their planned destinations,” said Jim Siciliano, vice president of marketing and business development.