Valero Refinery Expansions Pushed Forward by Eagle Ford Production Growth – $730 Million

Valero Will Spend $730 Million on Two Expansions Along the Gulf Coast
Valero Refinery Map

Valero Refinery Map – Partial | Click to Enlarge

Valero plans to build crude topping units at its Corpus Christi, TX refinery and its refinery in Houston.

The two expansions come with a price tag of $730 million, but will likely be needed if the growth of light-sweet crude oil from areas like the Bakken, Eagle Ford, and Permian Basin continue.

Read more: Valero Houston Refinery Expanding for Eagle Ford Crude [Read more…]

Valero Investing to Handle More Eagle Ford Oil & Other Light Crude

Processing More Domestic, Light Crude Should Improve Refining Margins
Valero Corpus Christi and Houston Refinery Throughput

Valero Corpus Christi and Houston Refinery Throughput | Click to Enlarge

Valero Energy plans to increase its light oil processing capacity at its Gulf Coast refineries by adding topping units at Houston and Corpus Christi locations.

The investments will allow the company to process more Eagle Ford oil than possible today. [Read more…]

Valero Files To Create a Logistics MLP – Valero Energy Partners

Logistics MLPs Trade At Multiples of 3-5 Times More Than Refineries
Valero Logistics Growth Investments

Valero Logistics Growth Investments | Click to Enlarge

Valero has filed a registration statement with the SEC for the initial public offering of Valero Energy Partners (VLP).

VLP will serve as a vehicle for dropping down (selling) logistics assets from Valero. Logistics assets include everything that helps Valero delivery quality crude to its refineries: pipelines, rail cars, rail unloading, barges, ships, docks, tanks, etc. [Read more…]

Valero’s Quebec Refinery Processing Eagle Ford Barrels “Very Well”

Valero Sent Eagle Ford Crude To Canadian Refinery For A Test Run
Valero Refinery Map

Valero Refinery Map – Partial | Click to Enlarge

It’s no secret that Canada is importing more and more U.S. oil. Some of that is coming from the Eagle Ford.

In the first quarter of 2013, the U.S. sent almost 100,000 b/d to refineries in Canada. The reality is the U.S. is much close and can supply oil at more competitive rates than places like western Africa. [Read more…]

Valero Houston Refinery Expanding for Eagle Ford Crude

$220-280 Million Will Be Spent to Allow For More Eagle Ford Crude
Valero Houston Refinery

Valero Houston Refinery | Click to Enlarge

Valero plans to boost Eagle Ford refining capability by adding a 90,000 b/d crude topper at its Houston refinery. The 160,000 b/d refinery is set up to refine the typical light, sweet crude, but the topper will allow the facility to process even greater volumes of lighter Eagle Ford Crude. As much as 40% of Eagle Ford crude production is consider condensate and has an API gravity of more than 50 degrees. [Read more…]

Eagle Ford Crude to Canada? – Valero Gets Approval

US Department of Commerce Approved a 1-Year Export Permit to Eastern Canada
Valero Quebec City Refinery

Quebec City, Canada

V alero received US Department of Commerce approval to ship Eagle Ford crude oil to a refinery in Quebec City, Canada. A shipment has yet to set sail, but the company expects it could save $1-2 per barrel by utilizing Gulf Coast (Eagle Ford) volumes versus crude shipped across the Atlantic. [Read more…]