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Hydrocarbon system to receive LP gas, refined products

March 29, 2016 By    

Rangeland Energy initiated the development of the South Texas Energy Products System (STEPS), an integrated hydrocarbon logistics system. According to the company, the system will receive and store refined products, LP gas and other hydrocarbons at a new terminal hub in Corpus Christi, Texas, and transport them to terminals primarily located in Mexico.

Marine facilities will be added to the system in Corpus Christi during future phases of STEPS, along with infrastructure to accommodate additional commodities, Rangeland Energy says.

“STEPS will be a great benefit to U.S. refiners, marketers and consumers in Mexico,” says Chris Keene, president and CEO of Rangeland Energy. “There is an abundance of hydrocarbons in the U.S. and an increasing demand for gasoline, diesel and propane in Mexico.”

Keene adds that Rangeland Energy will begin the STEPS project by transloading into railcars for manifest shipments to grow that business into a large unit-train operation that ties Corpus Christi’s refineries, tank farms, splitters, fractionators and other plants into a well-connected hydrocarbon hub.

During the first phase of STEPS, Rangeland Energy plans to construct the terminal in Corpus Christi. The terminal site is strategically located along the Kansas City Southern Railroad mainline within five miles of the Port of Corpus Christi and the Valero, Citgo and Flint Hills refineries. Refined products and LP gas will move out of the STEPS Corpus Christi terminal primarily by rail, but the terminal will eventually connect to pipelines and vessels. The terminal is expected to be in service during the first quarter of 2017. Initial rail shipments will begin with the facility accommodating unit trains later in 2017.

During the second phase of the project, Rangeland Energy plans to explore the development of inland rail unloading terminal alternatives located on the Kansas City Southern Railroad mainline in Mexico. The second phase will include the expansion of the Corpus Christi terminal to accommodate multiple unit trains, as well as additional capacity to handle other commodities.

Rangeland Energy develops, acquires, owns and operates midstream infrastructure for crude oil, natural gas, natural gas liquids and other petroleum products. The company focuses on emerging hydrocarbon production areas across North America.

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