VLI Valero Lp

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.