Exhibit 99.1



Valero L.P. Announces Pricing of 1,075,000 Common Units

SAN ANTONIO,  Texas,  August 6, 2003 - Valero L.P.  (NYSE:  VLI)  announced  the
pricing on August 5, 2003 of 1,075,000  common units at a public  offering price
of $41.15 per unit.  All units are being sold by Valero  L.P.  The  offering  is
scheduled to close on August 11, 2003.

Valero  L.P.  has  granted  the  underwriter  the  option to  purchase  up to an
additional  161,250  common  units  to  cover   over-allotments,   if  any.  The
partnership  intends to use the net  proceeds  for  working  capital and general
partnership  purposes,  including  future  acquisitions  and  expansion  capital
projects.

Lehman Brothers acted as the sole underwriter for the offering.

This press release shall not constitute an offer to sell or the  solicitation of
an offer to buy any of the securities  described herein.  There shall not be any
sale of these securities in any  jurisdiction in which such offer,  solicitation
or sale would be  unlawful  prior to  registration  or  qualification  under the
securities laws of any such jurisdiction. The offering may be made only by means
of a prospectus supplement and the related prospectus.

When available, copies of the final prospectus supplement and related prospectus
for this  offering  may be obtained  from the offices of Lehman  Brothers  Inc.,
Equity Capital Markets, 745 7th Avenue, 3rd Floor, New York, NY 10019.

About Valero L.P.

Valero L.P. owns and operates crude oil and refined product  pipelines,  refined
product terminals and refinery  feedstock storage assets primarily in Texas, New
Mexico,  Colorado,  Oklahoma and California.  The partnership transports refined
products from Valero  Energy's  refineries to established and growing markets in
the  Mid-Continent,  Southwest and the Texas-Mexico  border region of the United
States. In addition, its pipelines and storage facilities primarily supply seven
of Valero Energy's key refineries with crude oil and other feedstocks as well as
provide access to domestic and foreign crude oil sources.

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 2002 annual report on Form 10-K and
subsequent filings with the Securities and Exchange Commission.

     CONTACT:  Valero L.P., San Antonio
               Investors, Eric Fisher, Director, Investor Relations:
               210/370-2896
               or
               Media, Mary Rose Brown, Senior Vice President,
               Corporate Communications: 210/370-2314
               Web Site:  http://www.valerolp.com