Rangeland Energy Begins Development of South Texas Energy Products System (STEPS)
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Rangeland will construct a terminal in Corpus Christi, Texas, to
receive and store refined products and LPG and ship them to Mexico.
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The STEPS Corpus Terminal site is located on the Kansas City Southern
Railroad mainline.
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Subsequent phases are expected to include the development of a
marine-based facility in Corpus Christi as well as additional capacity
to handle other commodities.
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Rangeland is nearing completion of its RIO Pipeline. The 109-mile
pipeline will provide shippers with crude oil and condensate
transportation from the Delaware Basin to the Midland market and major
takeaway pipelines.
Rangeland
Energy (“Rangeland”) announced today that it has
initiated development of the South Texas Energy Products System
(“STEPS”). STEPS is an integrated hydrocarbon logistics system that will
receive and store refined products, liquefied petroleum gas (“LPG”) and
other hydrocarbons at a new terminal hub located in Corpus Christi,
Texas, and transport them to terminals primarily located in Mexico.
During the initial phase of the project, refined products and LPG will
be received in the Corpus Christi terminal then shipped to inland
terminals located in Mexico. In subsequent phases, marine facilities in
Corpus Christi will be added to the system, along with the
infrastructure to accommodate additional commodities including crude
oil, condensate and fuel oil. The STEPS project will expand upon and
leverage Rangeland’s successful track record of developing similar
infrastructure in the Bakken Shale and Permian Basin.
STEPS, Phase I
The first phase of STEPS is the construction of the terminal in Corpus
Christi, Texas, where Rangeland has entered into an agreement to
purchase approximately 190 acres of land. The terminal site in Corpus
Christi is strategically situated along the Kansas City Southern
Railroad (“KCS”) (NYSE: KSU) mainline within five miles of the Port of
Corpus Christi and the Valero, CITGO and Flint Hills refineries. Inbound
products initially will be delivered by truck or rail, followed later by
pipeline and barge. Refined products and LPG will move out of the STEPS
Corpus Terminal primarily by rail, but the terminal could eventually
connect to pipelines and vessels. The STEPS Corpus Terminal is expected
to be in service during the first quarter of 2017. Initial Phase I rail
shipments will be by manifest with the facility accommodating unit
trains later in 2017.
CEO Perspective
“STEPS will be a great benefit to U.S. refiners, marketers and consumers
in Mexico. There is an abundance of hydrocarbons in the U.S. and an
increasing demand for gasoline, diesel and propane in Mexico,” said
Chris Keene, president and CEO of Rangeland Energy. “We are experienced
terminal and pipeline developers with a deep understanding of logistics
and how to make an integrated, multimodal system work. We will begin by
transloading into rail cars for manifest shipments and grow that
business into a large unit-train operation that ties together Corpus
Christi’s refineries, tank farms, splitters, fractionators and other
plants into a well-connected and efficient hydrocarbon hub.”
STEPS, Phase II and Additional Growth
While construction of the Corpus Christi terminal is underway, Rangeland
will work with others to explore the development of inland rail
unloading terminal alternatives located on the KCS mainline in Mexico.
Destinations may include Monterrey/Saltillo, San Luis Potosí, Querétaro,
Guadalajara and Mexico City. Phase II will include the expansion of the
Corpus Christi Terminal to accommodate multiple unit trains as well as
additional capacity to handle other commodities. Subsequent phases may
include the development of a marine-based facility in Corpus Christi
with access to a marine-based destination terminal in Tuxpan, Mexico.
History
In 2011, Rangeland Energy developed the COLT Hub, the leading crude oil
rail, storage and pipeline system in the Bakken, selling it in 2012 to
Inergy Midstream, L.P. (now Crestwood Equity Partners LP, NYSE: CEQP).
RIO System Update
Rangeland Energy is also the developer of the RIO System located in the
Delaware Basin. The RIO System is a multi-asset system designed to
support the production of crude oil and condensate in the Delaware Basin.
The RIO Hub, commissioned in July 2015, is a 300-acre rail terminal
located near Loving, New Mexico, in the heart of the Delaware Basin’s
drilling and production activity. The terminal provides services for
crude oil, condensate and frac sand, including unit train unloading,
silo storage and truck loading facilities. To date, the RIO Hub has
received and distributed approximately 1 million tons of frac sand to
support drilling operations in the surrounding area.
Nearing completion and expected to be in service in July 2016, the
109-mile, 12-inch RIO Pipeline will provide shippers with crude oil and
condensate transportation from the heart of the Delaware Basin to
Midland, Texas, where shippers have access to the Midland market and
major takeaway pipelines to the Gulf Coast, Cushing and other markets.
The pipeline and related infrastructure will provide more than 125,000
barrels per day of capacity. Truck unloading facilities and storage will
be located at Rangeland’s State Line Terminal at the origin of the
pipeline and Rangeland’s Midland Delivery Facility, where additional
space is available to build customer-leased crude storage.
About Rangeland Energy
Headquartered in Sugar Land, Texas, Rangeland Energy was formed in 2009
to focus on developing, acquiring, owning and operating midstream
infrastructure for crude oil, natural gas, natural gas liquids and other
petroleum products. The company is focused on emerging hydrocarbon
production areas across North America, with an emphasis on West Texas,
the Gulf Coast and Canada. The Rangeland team represents more than 200
years of combined midstream experience and is backed by an equity
commitment from EnCap
Flatrock Midstream. Visit www.rangelandenergy.com
for more information.
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