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.
Valero will add a 90,000 b/d topping unit at its Houston refinery and a 70,000 b/d topping unit at one of the company's Corpus Christi refineries. The company expects returns of greater than 30% (IRRs) for the two investments.
Valero has two plants with total refining capacity of 325,000 b/d in Corpus Christi and the company's Houston refinery has total capacity of 160,000 b/d.
Running lighter crude will help maximize the production of gasoline and diesel.
Valero is also expanding its McKee crude unit in North Texas by 25,000 b/d in 2015 and is evaluating projects at both its Port Arthur and Meraux refineries.
With continued growth in West Texas plays, the Bakken in North Dakota, and the Eagle Ford, refineries will continue making investments to ensure they are processing the maximum volume of lower priced domestic crude.
See the full presentation at valero.com