KCS to serve new Rangeland energy hub

Rangeland Energy III LLC announced this week the launch of operations at its South Texas Energy Products System (STEPS) terminal in Corpus Christi, Texas.

The company also announced it will start loading diesel into rail cars for a "leading refined products customer." Kansas City Southern will deliver the diesel to third-party terminals in Mexico, Rangeland officials said in a press release.

"This is the first customer to contract with us for services at the STEPS facility," said Rangeland President and Chief Operating Officer Christopher Keene. "As we continue to build out the STEPS project, we are working with other key marketers, refiners and producers to provide services into and out of STEPS."

STEPS is an integrated hydrocarbon logistics system that receives and stores refined products, liquefied petroleum gas (LPG) and other hydrocarbons at the Corpus Christi hub.

During the initial phase of the project, refined products and LPGs will be received in Corpus Christi then shipped to third-party inland terminals in Mexico. In later phases, marine facilities in Corpus Christi and Mexico will be added to the system, along with the infrastructure to accommodate additional commodities, including crude oil, condensate and fuel oil, Rangeland officials said.

The Corpus Christi terminal is located along a KCS mainline within five miles of the Port of Corpus Christi and the Valero, CITGO and Flint Hills refineries. Inbound products initially will be delivered by truck or rail, followed later by pipeline and barge.

Refined products and LPGs primarily will be transported from the Corpus Christi terminal by rail, but the facility could eventually connect to pipelines and vessels, according to Rangeland.