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Permit approved for US-Mexico products line

29 Jun 2017 22:37 (+01:00 GMT)
Permit approved for US-Mexico products line

Houston, 29 June (Argus) — The Trump administration this week approved a three-year-old permit for a new, 108,000 b/d products pipeline connecting south Texas to northern Mexico.

The US State Department issued a presidential permit for the 10-inch New Burgos pipeline from a terminal near Edinburg, Texas, underneath the Rio Grande River and into Reynosa, Tamaulipas.

The NuStar Energy line follows the same right-of-way as an existing 64,000 b/d Burgos pipeline that began operating in 2007. A separate permit issued earlier this month approved adding LPG, gasoline and other products to the naphtha already moving on the 8-inch pipeline.

"We are in negotiations with different customers to move the refined products and this signing of the permits is the first step to moving that forward," the company said today.

The company has said it expected to spend $250mn on the project next year.