April 01, 2016
In a March 23 news release, Rangeland Energy announced that it has initiated development of the South Texas Energy Products System (STEPS) in Corpus Christi, Texas. The terminal site is located on the KCS main line and targeted to be in service first quarter 2017 for initial manifest shipments.
STEPS is an integrated hydrocarbon logistics system that will receive and store refined products, liquefied petroleum gas (LPG) and other hydrocarbons at the new terminal hub in Corpus Christi 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 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 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 Rangeland Energy president and CEO Chris Keene. “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.”
“This terminal announcement further validates KCS’ strategic initiative to transport refined products from origins in the U.S. to key markets in Mexico. The 2013 change to the Mexican constitution made this possible,” said KCS executive vice president and chief marketing officer Brian Hancock. “KCS is uniquely positioned to take advantage of this opportunity with demand for refined products up in Mexico while refining capacity is down. U.S. refineries have plenty of product for export, and the pipeline network in Mexico has insufficient coverage in the center of the country. KCS bridges the gaps in the Mexican pipeline network, allowing us to transport much-needed product to growing markets.”
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.