Seeking Alpha

Eagle Ford crude prompts upgrades at Valero’s Texas refineries

  • Valero Energy (VLO) plans to invest $730M in upgrading two of its Texas refineries to process increased volumes of light crude sourced from the Eagle Ford shale.
  • The projects, which VLO expects to complete by year-end 2015, will expand light sweet crude processing capacities at its 160K bbl/day Houston and 325K bbl/day Corpus Christi refineries by an additional 90K bbl/day and 70K bbl/day, respectively.
  • VLO also plans a 15K bbl/day expansion of the crude unit at its 170K bbl/day McKee, Tex., refinery to increase throughputs of crude supplies from the nearby Permian basin.
Comments (2)
  • gfoley11
    , contributor
    Comments (7) | Send Message
     
    Finally! Sounds great, for it's an investment that will pay off, without question.
    3 Feb 2014, 08:16 PM Reply Like
  • TimeOnTarget
    , contributor
    Comments (2902) | Send Message
     
    Yep, unless the export situation changes. Even then, they would still have a slight price advantage. If that doesn't change, the advantage should be substantial. The Gulf Coast and MidCon refiners are heading toward getting maxed out on processing ability for light oil. When that happens EF should start getting heavily advantaged -- oh, the irony-- EF frequently being practically light straight run before ever reaching the refinery.
    3 Feb 2014, 11:04 PM Reply Like
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