An abundance of hydrocarbons in the United States and growing demand for gasoline, diesel and propane in Mexico are behind the development of Rangeland Energy's South Texas Energy Products System (STEPS).
Work was recently begun on the logistics system in Corpus Christi, TX. It will receive and store refined products, liquefied petroleum gas (LPG) and other hydrocarbons for transport to terminals primarily located in Mexico. During the initial phase of the project, refined products and LPG will be received at the terminal then shipped to inland terminals located 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 development of similar infrastructure in the Bakken Shale and Permian Basin.
Sugar Land, TX-based Rangeland has entered into an agreement to purchase about 190 acres of land in Corpus Christi. The terminal site is along the Kansas City Southern Railroad (KCS) mainline and within five miles of the Port of Corpus Christi and the Valero, Citgo and Flint Hills refineries. Inbound products initially will be delivered by truck or rail, followed later by pipeline and barge. Refined products and LPG will move out of the terminal primarily by rail, but the terminal could eventually connect to pipelines and vessels. The terminal is expected to be in service during the first quarter of 2017. Initial rail shipments will be by manifest with the facility accommodating unit trains later in 2017.
"STEPS will be a great benefit to U.S. refiners, marketers and consumers in Mexico," said Rangeland CEO Chris Keene. "There is an abundance of hydrocarbons in the U.S. and an increasing demand for gasoline, diesel and propane in Mexico. 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."
While construction of the terminal is under way, Rangeland will work with others to explore the development of inland rail unloading terminal alternatives located on the KCS mainline in Mexico. Destinations may include Monterrey/Saltillo, San Luis Potosi, Queretaro, Guadalajara and Mexico City. The project's second phase will include expansion of the Corpus Christi terminal to accommodate multiple unit trains as well as additional capacity to handle other commodities. Subsequent phases may include the development of a marine-based facility in Corpus Christi with access to a marine-based destination terminal in Tuxpan, Mexico.
In 2011, Rangeland developed the COLT Hub, a crude oil rail, storage and pipeline system in the Bakken Shale, selling it in 2012 to Inergy Midstream LP (now Crestwood Equity Partners LP) (see Shale Daily, Nov. 6, 2012). Rangeland is also the developer of the RIO System in the Delaware Basin. It is a multi-asset system designed to support the production of crude oil and condensate in the sub-basin of the Permian. The RIO System terminal provides services for crude oil, condensate and frack sand, including unit train unloading, silo storage and truck loading facilities (see Shale Daily, Oct. 12, 2015; Aug. 4, 2015).