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Rangeland Energy is developing a South Texas Energy Products System (STEPS) terminal in Corpus Christi, Texas, on Kansas City Southern's main line, the Class I announced last week on its website.
The terminal is expected to begin service in first-quarter 2017 for initial manifest shipments.
STEPS is an integrated hydrocarbon logistics system that will receive and store refined products, liquefied petroleum gas (LPG) and other hydrocarbons at the new terminal hub in Corpus Christi and transport them to terminals primarily located in Mexico.
Energy reforms approved by the Mexican government in 2013 made the project possible, said a KCS official.
"KCS is uniquely positioned to take advantage of this opportunity with demand for refined products up in Mexico while refining capacity is down," said KCS Executive Vice President and Chief Marketing Officer Brian Hancock.
"U.S. refineries have plenty of product for export, and the pipeline network in Mexico has insufficient coverage in the center of the country," he said. "KCS bridges the gaps in the Mexican pipeline network, allowing us to transport much-needed product to growing markets."
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