Valero, Harvest Pipeline To Build Crude Line

May 2011, Vol. 238 No. 5

Valero and Harvest Pipeline plan to build a pipeline to deliver crude oil from the Eagle Ford to Valero’s Three Rivers refinery.

“We are building a line with segments of 10 inches and 12 inches in diameter to deliver oil from Atascosa and Live Oak counties directly to the Three Rivers refinery,” said Steve Jacobs, president of Harvest Pipeline. “The pipe has been ordered and ROW acquisition is under way.”

Valero intends to increase the amount of Eagle Ford crude processed at its Three Rivers refinery from about 20,000 bpd to as much as 60,000 bpd. The new pipeline will lower the refinery’s costs and reduce traffic from trucks delivering crude oil to the plant, which has a total throughput capacity of 85,000 bpd.

Initial capacity of the line will be 50,000 bpd, expandable to more than 70,000 bpd. It will include direct connections to producers along its route and will initially include two truck-offloading stations. The system will extend 50 miles north of Three Rivers into the heart of the oil region of the Eagle Ford trend. It is scheduled to begin operation in December.

The construction contract for the pipeline will be let in late July or early August.

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