Boston, MA 10/15/2014 (wallstreetpr) – In a recent announcement by NuStar Energy L.P. (NYSE:NS), the company has signed with PMI, which is an affiliate of Pemex, a letter of intent proposing a joint venture between the two companies to build new pipeline infrastructure for the transportation of liquefied petroleum gases and other refined products into Mexico, which will be targeted to meet the growing demand for such products in Mexico.
According to Mr. Jose Manuel Carrera, who is the Director General for PMI, the joint venture is a first of its kind between NuStar Energy L.P. (NYSE:NS) and PMI and it would enable PMI to get in touch with a number of suppliers of LPG and refined products in the Gulf Coast of the U.S.
Moreover, as the joint venture shall develop a pipeline for transportation of petroleum products between the U.S. and Mexico, it would lead to a creating of a more clean, reliable and efficient means of transporting such products and shall also help in reducing the amount the petroleum products transported through trucks. Petroleum products like LPG and refined products will be transported from Mont Belvieu and Corpus Christi in Texas to Nuevo Laredo and Burgos-Reynosa in Mexico.
Brad Barron, who is the CEO and President of NuStar Energy L.P. (NYSE:NS), believes that the above joint venture would immediately add to the earnings of both the companies once the project becomes operational. Meanwhile, the project is expected to be completed and start operating from the second half of 2016, as per the projections.
The proposed project will see both the companies jointly funding the construction of the pipeline as well as the storage assets, while NuStar Energy L.P. (NYSE:NS) would be managing the construction and operation of the assets.
NuStar Energy L.P. (NYSE:NS) had also partnered with PMI in the past for transporting propane into Mexico.
