Valero L.P. Subsidiary, Kaneb Terminals BV, Signs Contract for Amsterdam Terminal Expansion

  
    
  
  
    
      Kaneb Terminals BV, a subsidiary of Valero L.P. (NYSE:VLI), signed a 
      contract on November 28, 2006 with BV Aannemingsbedrijf H. Verwater & 
      Zonen for the construction of 264,000 cubic metres of petroleum storage 
      at its Amsterdam terminal.
    
    
      Construction of the additional petroleum storage, suitable for gasoline 
      and distillate, is expected to begin in January 2007, and the final 
      phase of this project is expected to be completed by the end of 2007. 
      The terminal currently operates 158,000 cubic metres for fuel oil, gas 
      oil and bunker blending. After this expansion, the terminal will have a 
      capacity of 424,000 cubic metres. Additionally, there are plans to 
      construct another 44,000 cubic metres for clean products and 142,000 
      cubic metres for fuel oil, resulting in a total terminal capacity of 
      610,000 cubic metres.
    
    
      A new marine dock and two barge berths are also expected to be 
      constructed, giving the facility a total of two marine berths and five 
      barge berths. The new marine dock will be able to accept 80,000 
      dead-weight tons (dwt) ships, the maximum capacity the Port of Amsterdam 
      can handle, and one of the barge berths will be able to take mega-barges 
      up to 10,000 dwt. Additional marine space will be available to expand as 
      the business develops.
    
    
      “This is a significant project for us and will 
      increase the size of the facility by a considerable amount,” 
      said Jan Oerlemans, General Manager of Kaneb Terminals BV. “The 
      construction of petroleum tanks for clean products will also allow for 
      gasoline blending, which is a niche business for the Port of Amsterdam.”
    
    
      “This project fits well with our strategy of 
      expanding key terminals worldwide,” said Curt 
      Anastasio, Valero L.P.’s Chief Executive 
      Officer and President. “We are investing 
      approximately $250 million to expand several of our terminals in major 
      growth markets, and we expect several of these projects to begin 
      contributing to our earnings in mid to late 2007.”
    
    
      Valero L.P. is a publicly traded, limited partnership based in San 
      Antonio, with 9,303 miles of pipeline, 86 terminal facilities and four 
      crude oil storage facilities. One of the largest independent terminal 
      and petroleum liquids pipeline operators in the nation, the partnership 
      has operations in the United States, the Netherlands Antilles, Canada, 
      Mexico, the Netherlands and the United Kingdom. The partnership’s 
      combined system has approximately 12.25 million cubic metres (77 million 
      barrels) of storage capacity, and includes crude oil and refined product 
      pipelines, refined product terminals, a petroleum and specialty liquids 
      storage and terminaling business, as well as crude oil storage tank 
      facilities. For more information, visit Valero L.P.'s website at www.valerolp.com.
    
    
      BV Aannemingsbedrijf H. Verwater & Zonen is part of the Verwater Group, 
      founded in 1922 in the Netherlands. Verwater has since developed into 
      the specialist in total tank maintenance and tank terminal construction. 
      A dedicated team works worldwide to provide excellence, safety and 
      quality in the field of engineering, tank construction, jacking, 
      coating, civil and mechanical works. The range of works carried out by 
      Verwater includes also the construction of complete tank pits which 
      comply with the latest environmental regulations.
    
    
      Cautionary Statement Regarding Forward-Looking Statements
    
    
      This press release includes forward-looking statements within the 
      meaning of the Securities Litigation Reform Act of 1995 regarding future 
      events and the future financial performance of Valero L.P. All 
      forward-looking statements are based on the partnership's beliefs as 
      well as assumptions made by and information currently available to the 
      partnership. These statements reflect the partnership's current views 
      with respect to future events and are subject to various risks, 
      uncertainties and assumptions. These risks, uncertainties and 
      assumptions are discussed in Valero L.P.'s 2005 annual report on Form 
      10-K and subsequent filings with the Securities and Exchange Commission.