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PENN OCTANE CP Message Board

  • rrb1981 rrb1981 Jul 25, 2005 11:30 PM Flag

    More Bad News from Valero

    This can't help Rio Vista and Penn Octane. Valero already has the Dos Laredos pipeline that was killing Rio Vista and now this:

    I copied and pasted this news release from VLI and VLO site.

    Valero L.P. (NYSE: VLI), a mid-stream logistics partnership partially owned by Valero Energy Corp. (NYSE: VLO), has signed agreements with Pemex-Gas y Petroqu�mica B�sica and P.M.I.� Trading Limited (PMI). The project consists of constructing more than 110 miles of pipeline, and shipping oil products from Pemex�s assets in the Burgos Basin near Reynosa, Mexico, to Brownsville, Texas.

    In a separate transaction, Valero Marketing and Supply Company, a subsidiary of Valero Energy, has forged a five-year agreement with PMI to almost double the amount of liquefied petroleum gas (LPG) it currently supplies to PMI, to help serve the LPG demand in the northeastern part of that country.

    �We�re excited about partnering with the Pemex group to help meet the increased need for fuel on both sides of the border,� said Bill Greehey, chairman and CEO of Valero Energy. �We�ve enjoyed a great relationship with the Pemex group for the past several decades, and we look forward to working with them for many years to come.� Greehey added that over the years, Valero has purchased significant volumes of crude oil from the Pemex group and has supplied it with LPG, natural gas, gasoline, gasoline blending components and distillates.

    Valero L.P. Pipeline Project
    Valero L.P. will construct approximately 110 miles of new pipeline with the capacity to move about 32,000 barrels per day (BPD) of oil products from Pemex�s assets in the Burgos Basin near Reynosa to a terminal in Brownsville.

    The pipeline project is scheduled for completion in mid 2006 and will cost approximately $54 million. As part of the agreement, PMI will have an approximately 10-year shipping agreement with Valero L.P. to move the oil products once the pipeline is commissioned.

    On April 1, 2005, Valero Energy began supplying PMI with a volume of approximately 10,000 BPD of LPG � almost twice the amount the company had been supplying since last summer. A majority of the LPG is being produced at Valero Energy�s refineries located in Corpus Christi and Three Rivers. As with the earlier agreement, Valero L.P. is responsible for shipping the LPG to its terminal in Nuevo Laredo, Mexico, where it is then delivered to PMI. From there, the propane is sold by Pemex-Gas y Petroqu�mica B�sica to its customers throughout Mexico.

    �Last summer, we began supplying a minimum of 5,000 barrels per day of LPG to PMI, and the transaction has been a win for everyone involved,� Greehey said. �With this new agreement, Valero Energy is supplying even more LPG from two of our refineries, the Pemex group is receiving a larger, stable supply of fuel for its customers, and Valero L.P. is able to increase the volume of its international business.�