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Valero Terminaling and Distribution Co. (VTDC), a subsidiary of Valero Energy Corporation, and TGS Development LP have formed a 50-50 joint venture and started construction on a new marine terminal on the lower Sabine-Neches Waterway near Port Arthur, Texas.

As participants in the joint venture, known as PI Dock Facilities LLC, TGS Development LP will act as the site developer and VTDC will act as the operator.

The marine terminal will receive crude tankers of up to Suezmax class, and will be able to operate without the daylight restrictions imposed on other terminals in the upper Sabine-Neches waterway.

The crude dock, which is scheduled for completion in the fourth quarter of 2013, will deliver crude oil through a new 36-inch pipeline to Valero's Port Arthur Refinery and will have the flexibility to connect to other local refineries. The marine terminal site spans over 100 acres and has space for two additional berths suitable for LPG and refined product exports or additional crude receipts.

"We are excited to have Valero and TGSD develop this site for crude oil receipts. This will be a huge plus for the City of Port Arthur, and we support further expansion into marine movements of other commodities through PI Dock Facilities," said Terry Doyle, chairman of the Pleasure Island Commission of the City of Port Arthur.

Richard Lashway, Senior Vice President, Logistics Operations and Commercial Development for Valero, said, "The site, previously used as a dry dock facility with a protected inlet off the channel, offers Valero 24-hour berthing for vessels up to Suezmax Class, reducing our delivered crude costs."