VALERO

V-Tex Logistics Pipeline

& Terminal Project

V-Tex Logistics Pipeline and Terminal Project

V-Tex Logistics Pipeline and Terminal Project has two segments. First, Valero is partnering with Magellan Midstream Partners to jointly build a 135-mile pipeline originating in Houston and terminating in Hearne, Texas. Then, Valero will build two new terminals; one in Hearne and one near Taylor, Texas, on Chandler Road, connected by a 70-mile pipeline. Construction for both segments began mid-2018 with completion targeted for mid-2019. This project will greatly expand fuel supply, including gasoline and diesel, providing an average of 60,000 barrels per day of new and reliable fuel for the fast-growing Central Texas population.

Project Overview

The project includes the construction of a 135-mile pipeline from Houston to Hearne, and 70 miles of 12-inch pipeline from Hearne to Williamson County, Texas, transporting an average of 60,000 barrels per day of refined products, including gasoline and diesel. Construction began mid-2018 with target completion by mid-2019.

The project also includes the construction of:

  • A terminal near existing refined product terminals in Hearne
  • A terminal located on Chandler Road, just west of FM 366 near Taylor, including truck loading racks and approximately 500,000 barrels of storage for transportation fuel

Valero will serve as construction manager and operator of the new terminals in Hearne and near Taylor, and the 70-mile pipeline connecting the two.

Magellan will serve as construction manager and operator of the new pipeline from Houston to Hearne.

Economic Impact:

  • Valero’s estimated investment is $380 million; $180 million for the Houston-to-Hearne pipeline and terminal and another $200 million for the Hearne to Williamson County pipeline and terminal portion. This project will generate approximately 350 development and construction jobs.

Community Involvement:

  • At Valero, we share our success with the communities where we live and work. As part of our commitment to the communities near the pipeline route and terminals, Valero will provide a First Responder Grant Program to help emergency responders receive funding to support training and response equipment needs to better serve their local communities.

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Safety, Reliability & Environmental Responsibility:

  • At Valero, safety is our foundation for success.
  • Valero is committed to working closely with stakeholders and landowners to design, construct, operate and maintain the pipeline and terminals in a safe and reliable manner, and to meet or exceed regulatory standards.
  • Valero will include important safety elements that will meet or exceed minimum safety, design, construction and operating standards, such as using pipe thicker than required by regulations, 24/7 remote monitoring and real-time leak detection technologies.

Federal, State & Local Oversight:

  • A number of federal, state and local agencies will be involved in the approval and oversight of the project.
  • The project will seek permits and/or approvals from the agencies for construction and operation of the pipeline and terminals. These include, but are not limited to: air, water, cultural and natural resources permits/approvals.

Pipeline Route:

  • The V-Tex Logistics pipeline will begin in Houston with a 135-mile pipeline to a terminal located near Hearne in Robertson County, and then connect to a 70-mile pipeline traveling west through Milam County to a location near Taylor in Williamson County.
  • The pipeline route is being developed to minimize the collective impact on the environment, cultural concerns and landowners during construction, and reduce potential incidents during operation. We are identifying the route and installation methods in an effort to minimize the risk of impact on sensitive areas.

About Valero

Valero Energy Corporation, through its subsidiaries (collectively, “Valero”), is an international manufacturer and marketer of transportation fuels and petrochemical products.

Valero Energy Corporation, through its subsidiaries (collectively, “Valero”), is an international manufacturer and marketer of transportation fuels and petrochemical products.

Valero is a Fortune 50 company based in San Antonio, Texas, and it operates 15 petroleum refineries with a combined throughput capacity of approximately 3.1 million barrels per day and 14 ethanol plants with a combined production capacity of 1.73 billion gallons per year.

The petroleum refineries are located in the United States, Canada and the United Kingdom, and the ethanol plants are located in the Mid-Continent region of the U.S. Valero also is a joint venture partner in Diamond Green Diesel, which operates a renewable diesel plant in Norco, Louisiana.

Diamond Green Diesel is North America’s largest biomass-based diesel plant. Valero sells its products in the wholesale rack or bulk markets in the U.S., Canada, the U.K., Ireland and Latin America. Approximately 7,400 outlets carry Valero’s brand names. Please visit www.valero.com for more information.

Valero Logistics Assets Overview:

Pipelines1

  • Over 1,200 miles of active pipelines

Racks, Terminals, and Storage1

  • Over 70 million barrels of active shell capacity for crude oil and products
  • 139 truck rack bays

Rail

  • 5,300 railcars, expected to serve long-term needs of ethanol asphalt, aromatics, and other products

Marine1

  • 51 docks
  • Two Panamax class vessels

1 Includes assets that have other joint venture or minority interests.

Valero community engagement highlights include:

150000
Volunteer hours

150,000 volunteer hours logged by Valero employees in 2018

55
Million

$55 million raised for worthy charities in 2018

14.6
Million

United Way supporter with more than $14.6 million pledged by employees and the company in 2018

12
Million

$12 million generated for children’s charities by the Valero Texas Open and Benefit for Children in 2018

Contact

For more information contact:  vtexlogisticsinfo@valero.com or 210-345-5465.

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