OCI Global and NuStar Sign Agreement to Deliver Ammonia into the Midwest
03 Mai 2023 - 11:39PM
Business Wire
OCI Global (Euronext: OCI) and NuStar Energy L.P. (NYSE: NS)
announced today that their affiliates have entered into an
agreement for OCI Global (“OCI”) to transport ammonia on a new
segment of NuStar Pipeline Operating Partnership L.P.’s (“NuStar”)
Ammonia Pipeline System.
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the full release here:
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Under the arrangement, NuStar will install a new 14-mile
pipeline segment that will connect OCI’s Nitrogen facility in
Wever, Iowa with NuStar’s existing 2,000-mile anhydrous ammonia
pipeline, which originates in Louisiana and flows northbound to
various points in the Midwest, including Iowa.
OCI’s facility uses ammonia to make fertilizer and produce DEF
(Diesel Exhaust Fluid), which reduces emissions from diesel engines
in cars, as well as light and heavy-duty trucks, farming equipment
and other heavy machinery.
“We are pleased to partner with OCI to better serve the area’s
agricultural needs by delivering more ammonia to help meet
fertilizer demand for local and regional farmers and by providing
additional ammonia to serve as feedstock for upgraded products,”
said NuStar Chairman and CEO Brad Barron. “We expect this
healthy-return, low-capital project to meaningfully increase
utilization of our system in 2024 and we are excited about the
growing interest in ammonia – to reduce emissions and supply the
globe – which we expect to generate significant additional
opportunities for even greater utilization of our Ammonia Pipeline
System over the next several years.”
The agreement has been executed by both companies and commits
NuStar to provide transportation services under a long-term
arrangement. To facilitate the project, OCI has committed $30
million in capital expenditures for new ammonia cooling and storage
infrastructure. The proposed infrastructure will allow OCI to
economically transport ammonia from the Gulf Coast and capitalize
on its existing storage capacity.
OCI, which owns and operates U.S. ammonia production facilities
in Wever, Iowa and Beaumont, Texas, is expected to bring an
additional 1.1 million tons of blue ammonia capacity online in 2025
in the Gulf Coast.
“We are excited to work with NuStar, a leader in safe and
responsible midstream operations. This highly cost-effective
project will allow us to safely and sustainably reach new
customers, strengthens our position in the premium U.S. Midwest
market and is one further step in our ammonia logistics,” said OCI
Global CEO Ahmed El-Hoshy. “As one of the most efficient
manufacturing plants in the nation, OCI Nitrogen, Iowa is leading
the way in providing U.S. farmers a stable, high-quality source of
nitrogen fertilizer products. Our plant in Iowa has been central to
our U.S. operations since starting up in 2017 and we look forward
to continued investment in the region.”
About OCI Global
OCI Global is a global leader in nitrogen, methanol and
hydrogen, driving forward the decarbonization of the
energy-intensive industries that shape, feed and fuel the world.
OCI’s production capacity spans four continents and comprises
approximately 16.7 million metric tons per year of hydrogen-based
products including nitrogen fertilizers, methanol, biofuels, diesel
exhaust fluid, melamine, and other products. OCI Global has more
than 4,000 employees, is headquartered in the Netherlands and
listed on Euronext in Amsterdam.
Learn more about OCI Global at www.oci-global.com. You can also
follow OCI Global on Twitter and LinkedIn.
About NuStar
NuStar Energy L.P., a publicly traded master limited partnership
based in San Antonio, Texas, is one of the largest independent
liquids terminal and pipeline operators in the nation. NuStar
currently has approximately 9,500 miles of pipeline and 63 terminal
and storage facilities that store and distribute crude oil, refined
products, renewable fuels, ammonia and specialty liquids. The
partnership’s combined system has approximately 49 million barrels
of storage capacity, and NuStar has operations in the United States
and Mexico. For more information, visit NuStar Energy L.P.’s
website at www.nustarenergy.com and its Sustainability page at
https://sustainability.nustarenergy.com/.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230503006007/en/
OCI Global Investor Relations Hans Zayed, Director
Email: hans.zayed@oci-global.com Tel: +31 (0) 6 18 251 367
OCI Global Communications Gillian Daines, Global
Head of Communications Email: gillian.daines@oci-global.com Tel:
+44 (0) 7752 785826
NuStar Investor Relations Pam Schmidt, Vice
President Email: pam.schmidt@nustarenergy.com Tel: (210)
918-2854
NuStar Communications Mary Rose Brown, Executive
Vice President Email: maryrose.brown@nustarenergy.com Tel: (210)
918-2314
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