V-Tex Logistics, LLC, an indirect wholly owned subsidiary of Valero Energy Corporation, announced today that it has signed an agreement with Magellan Pipeline Company, L.P., an indirect wholly owned subsidiary of Magellan Midstream Partners, L.P. to jointly build an approximately 135-mile, 16-inch products pipeline from Houston to Hearne, Texas.  

In addition, Valero will separately build a terminal on its Hearne property as well as a 12-inch pipeline that will stretch 70 miles from Robertson County to another storage terminal that will be built in Williamson County, north of Austin. Valero is evaluating several sites in WilCo to construct the terminal. A potential site is 1700 FM 1660 in Hutto, off State Highway 29 about a mile south of the San Gabriel River. V-Tex Logistics in March bought the nearly 50-acre property, which is mostly undeveloped and was most recently valued at $415,175 by the Williamson Central Appraisal District.

Valero’s expected cost for the projects is $380 million with targeted completion in mid-2019. Construction of these pipelines and terminals will provide a reliable fuel supply alternative for the fast-growing Central Texas marketplace. The new pipelines and terminals are expected to supply up to 60,000 barrels per day into Williamson County.

“These projects support our long-term strategy of expanding and extending our supply chain through organic growth projects,” said Joe Gorder, Valero Chairman, President and Chief Executive Officer.  “We are very pleased to participate in the Magellan South Pipeline Expansion project. Valero and Magellan have had a long and successful working relationship and the Houston to Hearne pipeline project will build on that history.”