By OGJ editors
HOUSTON, July 26 -- Valero LP, San Antonio, has signed agreements with Pemex-Gas y Petroquimica Basica and PMI Trading Ltd. (PMI) to construct more than 114 mi of products pipeline in Mexico and Texas and to ship products on the line for 10 years.
Valero expects to commission the $54 million pipeline system in mid-2006. It will have a capacity of 32,000 b/d.
An 8-in. pipeline segment will extend for 13 mi in Mexico from near Reynosa, where Pemex operates a 400 MMcfd gas processing plant, to the international border between Arguelles and Penitas, Tex., and 33 mi from there to Valero's products terminal at Edinburg, Tex. A 10-in. segment will extend the line 68 mi to Valero's Harlingen, Tex., terminal and on to a terminal at Brownsville.
Valero will operate the US segment, which will also connect to its Valley products pipeline system from Corpus Christi to Brownsville.
