V-Tex Logistics, LLC, an indirect wholly owned subsidiary of Valero Energy Corporation has signed an agreement with Magellan Pipeline Company, L.P. to jointly build an approximately 135-mile, 16-inch products pipeline from Houston to Hearne, Texas.
In addition, Valero will separately build a terminal in Hearne, a terminal in Williamson County, Texas, and an approximately 70-mile, 12-inch pipeline connecting the two terminals. Valero’s expected cost for the projects is $380 million with targeted completion in mid-2019. Construction of these pipelines and terminals will provide a reliable fuel supply alternative for the fast-growing Central Texas marketplace. The new pipelines and terminals are expected to supply up to 60,000 barrels per day into Williamson County.
“These projects support our long-term strategy of expanding and extending our supply chain through organic growth projects,” said Joe Gorder, Valero Chairman, President and Chief Executive Officer. “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 Hearnepipeline project will build on that history.”
