From the San Antonio Business Journal
San Antonio-based refining company Valero Energy Corp. will soon be able to move up to 60,000 barrels of gasoline and other refined products per day from its facilities in Houston to the suburbs of Austin.
Valero (NYSE: VLO) announced on Wednesday morning that its subsidiary V-Tex Logistics LLC entered into a construction deal with Magellan Pipeline Company LP to build a 136-mile pipeline.
Under a new construction deal, San Antonio-based refining company Valero Energy Corp. (NYSE: VLO) will be able to move gasoline and other refined products from its facilities in Houston to just outside of Austin in Williamson County.
Under the agreement, V-Tex Logistics and the Magellan Midstream Partners LP (NYSE: MMP) subsidiary will build a 16-inch refined products pipeline connecting a Valero facility in Houston to a property just outside Hearne in Robertson County.
Valero will separately build a storage terminal on its Hearne property as well as a 12-inch pipeline that will span 70 miles to link the Robertson County facility to another storage terminal that will be built on a yet-to-be-determined site in Williamson County.
Based on current timelines, the refined products pipelines and storage terminal projects are expected to cost $380 million and be in operation by mid-2019.
Valero CEO Joe Gorder said the pipelines and terminals will provide a reliable fuel supply alternative for the fast-growing Central Texas marketplace.
“These projects support our long-term strategy of expanding and extending our supply chain through organic growth projects,” Gorder said in a statement. “We are very pleased to participate in the Magellan South Pipeline Expansion project. Valero and Magellan have had a long and successful working relationship and the Houston to Hearne pipeline project will build on that history.”
