NuStar Energy and Pemex signed a letter of intent to build pipeline and storage assets to bring LPG and refined products from Texas to northern Mexico. It is one of the first infrastructure-focused agreements between American and Mexican companies since Mexico enacted new laws to open its energy sector to outside investment.
Under the agreement, the companies will jointly fund the construction of the pipeline and storage assets. LPGs and refined products will be transported from Mont Belvieu and Corpus Christi to Nuevo Laredo and Burgos-Reynosa, Mexico. NuStar will manage construction and operation. The assets are expected to be in service by the second half of 2016.
NuStar and Pemex have previously worked together to bring propane into Mexico, but this is the first joint venture between the two firms.
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