Rangeland Energy has started development of the South Texas Energy Products System (STEPS). STEPS will receive and store refined products, LPG, and other hydrocarbons at a new terminal in Corpus Christi, Tex., and transport them to terminals primarily in Mexico.
During the project’s initial phase, refined products and LPG received in the Corpus Christi terminal will ship to inland terminals in Mexico. In subsequent phases, marine terminals will be added, along with the infrastructure to accommodate crude oil, condensate, and fuel oil.
Rangeland has agreed to buy about 190 acres of land for STEPS Phase 1. The terminal site in Corpus Christi is strategically situated along the Kansas City Southern Railroad (KCS) mainline within 5 miles of the Port of Corpus Christi and the Valero, Citgo, and Flint Hills refineries.
Inbound products initially will arrive by truck or rail, followed later by pipeline and barge. Refined products and LPG will move out of the STEPS Corpus Terminal primarily by rail, but the terminal could eventually connect to pipelines and vessels. Rangeland expects the STEPS Corpus Terminal to be in service first-quarter 2017. Initial Phase I rail shipments will be by manifest, with unit trains deliveries starting later in 2017.
While construction of the Corpus Christi terminal is under way, Rangeland will work with others to explore the development of inland rail unloading terminal alternatives on the KCS mainline in Mexico. Destinations may include Monterrey-Saltillo, San Luis Potosí, Querétaro, Guadalajara, and Mexico City.
Phase II 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 development of a marine-based facility in Corpus Christi with access to a marine-based destination terminal in Tuxpan, Mexico.
Rangeland Energy is also developing the Rio System in the Delaware basin to support production of crude oil and condensate. The Rio Hub, commissioned in July 2015, is a 300-acre rail terminal near Loving, NM. It provides services for crude oil, condensate and frac sand, including unit train unloading, silo storage, and truck loading. Rio Hub has received and distributed roughly 1 million tons of frac sand to support drilling operations in the surrounding area.
Rangeland expects the 109-mile, 12-in. Rio Pipeline to enter service in July, shipping more than 125,000 b/d of crude and condensate from the Delaware basin to Midland, Tex., where shippers have access to the Midland market and major takeaway pipelines to the Gulf Coast, Cushing, and elsewhere.
Truck unloading and storage will be available at both Rangeland’s State Line Terminal at the pipeline’s origin and its Midland Delivery Facility, where additional space is available to build customer-leased crude storage.