OCI Global and NuStar Energy have entered into an agreement for OCI Global to transport ammonia on a new segment of NuStar Pipeline Operating Partnership L.P.’s Ammonia Pipeline System.
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 fertiliser 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.
Brad Barron, NuStar Chairman and CEO, said the deal will help better serve the area’s agricultural needs by delivering more ammonia to help meet fertiliser demand for local and regional farmers and by providing additional ammonia to serve as feedstock for upgraded products.
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