Westway Group Inc announced that its subsidiary Westway Terminal Company LLC has signed a lease conditions agreement with Valero Refining Texas LP. Subject to the fulfillment of certain conditions, the agreement gives Westway Terminal Co the right to lease approximately 5.68 acres of land adjacent to the Westway Houston 1 terminal for up to 30 years and to purchase three tanks totaling 3 million gallons of capacity and certain associated dock lines and dock assets.
Gene McClain, president of Westway Terminal Co, said, “We are extremely excited about the signing of this agreement with Valero because it provides us an opportunity to lease additional land on which we can further expand our Houston 1 facility in the future. We expect that this new property will have the potential to allow for the construction of up to 20 million gallons of additional storage capacity at this premier site. The lease and purchase would provide Westway with land on which to expand and a ready-made infrastructure to further serve our growing customer base in the Houston market, one of the most important ports in this hemisphere.”
Westway’s Houston 1 facility currently has a capacity of approximately 58 million gallons, with an additional 8 million gallons now under construction and scheduled to come on line in the fourth quarter of 2011.