OMAHA, Neb. -- DTN, a provider of transaction management and real-time market information services, said that NuStar Energy LP, one of the largest terminal and independent petroleum liquids pipeline operators, has selected a suite of DTN fuel supplier solutions to fulfill key operational, marketing infrastructure and other customer communications needs.
DTN's products are integrated into NuStar's own systems to provide real-time rack demand and inventory information, along with superior market intelligence to help NuStar maintain its competitive edge, [image-nocss] while maximizing profitability in a volatile fuel marketplace.
We're a new marketing company, and in developing our marketing platform we needed to look at new and alternative methods to provide information back to our customers, while establishing a system for handling our everyday business. From processing bills of lading to generating invoices, we've looked to DTN for assistance, said Philip Marquez, director of wholesale supply and trading for NuStar.
NuStar said having a DTN-based infrastructure will play an integral role in ensuring a smooth and profitable expansion. The company is currently selling refined products in terminals located in Alabama, Mississippi, North Carolina, South Carolina, New Jersey and Texas. In the near future, NuStar also plans to expand into Florida and the Northeast and is in the process of adding inventory at multiple locations across the country.
With DTN, when our customers roll their trucks up to the terminal, the volume they need will be accessible at the locations they want, at the contracted price they've arranged, no matter how tight supply might be, said Marquez.
With DTN, NuStar has a complete solution for pricing and contract management; product allocations; inventory and credit management; and competitive daily analysis. NuStar is leveraging real-time rack order management tools from DTN for more than 85% of its business, and it has plans to increase that number. With DTN, NuStar can manage complex prompt and forward fixed-price contracts across terminals as the market moves throughout the day. NuStar sees a consolidated, real-time view of sales and inventory positions so they can gauge the marketplace prior to setting a price. Its authorized buyers always purchase at the current price and NuStar controls how much inventory to make available. Sales and inventory information is updated in real-time as deals are completed, so NuStar can optimize margins and move or protect inventory as needed. DTN solutions help NuStar manage supply and improve the speed and profitability of risk management hedging actions.
NuStar integrates electronic transaction data from DTN into their backoffice systems to speed contract, billing and payable processes and create an electronic paper trail aiding in data integration and contract management for both buyers and sellers. DTN helps NuStar manage credit limits and allocations for customers and trading partners to reduce exposure and protect inventory. NuStar can deny credit or adjust allocation limits with a few simple keystrokes, instead of calling each terminal with which they do business. DTN electronic rack prices and business intelligence tools then facilitate benchmarking and daily competitive analysis.
With DTN, NuStar has access to real-time, electronic fuel transaction data that is critical to helping mitigate the effect of price volatility. NuStar is able to improve customer service with guaranteed volume for rack orders through the DTN platform, it said. DTN delivers ratable demand and insight to help NuStar better manage and optimize existing supply for key customers and partners, it added.
NuStar Energy is a master limited partnership based in San Antonio with 9,113 miles of pipeline, 87 terminal facilities and four crude oil storage facilities. One of the largest terminal and independent petroleum liquids pipeline operators in the nation, the partnership has operations in the United States, Canada, Mexico the Netherlands Antilles, the Netherlands and the United Kingdom. The partnership's combined system has approximately 80 million barrels of storage capacity, and includes crude oil and refined product pipelines, refined product terminals, petroleum and a specialty liquids storage and terminaling business, as well as crude oil storage tank facilities.
In February, Valero LP and Valero GP Holdings LLC changed their names to NuStar Energy LP and NuStar GP Holdings LLC, respectively, as a result of the separation from Valero Energy Corp., said Valero founder Bill Greehey, who serves as the chairman of both companies.
DTN, a private company based in Omaha, Neb., is a business-to-business provider of real-time market, news and weather information services to agriculture, energy trading markets and other weather-sensitive industries. The company delivers on-demand market information, commodity cash prices, industry news and in-depth analysis, and location-specific weather to more than 120,000 subscribers through DTN for agriculture, refined fuels and trading markets and DTN/Meteorlogix.
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