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Released April 26, 2024 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Thanks to a tight crude-oil supply at the start of 2024, Valero Energy Corporation (NYSE:VLO) (San Antonio, Texas) was able to mitigate the effects of heavier-than-average planned maintenance during the first quarter of 2024. Strong refining margins--which resulted partly from global shocks, such as weaker Russian refining capacity due to Ukrainian drone attacks--are allowing refining majors like Valero to keep their numbers in the black. Industrial Info is tracking about $1.5 billion worth of active and planned projects from Valero across the U.S. and Canada, more than 70% of which is attributed to refining-related projects.
Click on the image at right for a graph detailing Valero's active and planned projects across the U.S. and Canada, by project type.
"We expect refining margins to remain supported by tight product balances and seasonably low product inventories ahead of the driving season," said Lane Riggs, the chief executive officer of Valero, in an earnings-related quarterly conference call. "Longer-term, product demand is expected is exceed supply even with the start of the new refineries this year and the limited announced capacity additions beyond 2025."
U.S.-based refiners are poised to see growing export potential from Mexico, according to Valero's analysts. The company's Mexican subsidiary believes the country will not be able to meet growing demand with its own refining capacity, despite an ongoing ramp-up at Petroleos Mexicanos' (Pemex) (Mexico City) Dos Bocas Refinery, and will rely to some degree on U.S. output.
Carlos Garcia, the general director of Valero's Mexican subsidiary, said Mexico is looking at a fuel deficit of as much as 500,000 barrels per day (BBL/d), given the current market demand of about 1.3 million BBL/d, even if Dos Bocas fulfills Pemex's prediction of about 340,000 BBL/d of output by September. "Even with added capacity from the new Dos Bocas refinery, Mexico cannot generate enough diesel, jet fuel and gasoline to meet demand," Garcia said in an interview with Bloomberg.
Valero is preparing for a series of capacity additions and operational improvements at its refineries along the U.S. Gulf Coast, including two at its 235,000-BBL/d Saint Charles Refinery in Norco, Louisiana. Valero is in the process of installing a new boiler unit to improve activity during startup and shutdown periods, and is debottlenecking its delayed coker by upgrading pumps and reconfiguring its piping to raise throughput capacity from 80,000 to 82,000 BBL/d. Subscribers can learn more from detailed reports on the boiler and delayed coker projects and a detailed plant profile.
Along the Texas Gulf Coast, Valero is proposing upgrades to the fluid catalytic cracker units (FCCUs) at its refineries in Three Rivers and Port Arthur. The company also is looking into reliability upgrades at the Crude Topper 1 and Crude Topper units at its refinery in Texas City, which currently produce 72,000 and 53,000 BBL/d, respectively. Subscribers can read detailed reports on the Three Rivers, Port Arthur and Texas City projects.
Last summer, Diamond Green Diesel LLC (DGD), which is a joint venture between Valero and Darling Ingredients Incorporated (Irving, Texas), started construction on the $315 million addition of a sustainable aviation fuel (SAF) unit at its renewable diesel plant in Port Arthur, Texas. The project, which is engineered by Burns & McDonnell Incorporated (Kansas City, Missouri), is expected to produce up to 235 million gallons per year of SAF. Subscribers to Industrial Info's Global Market Intelligence (GMI) Alternative Fuels Project and Plant databases can learn more from a detailed project report and plant profile.
"The SAF project at the DGD Port Arthur plant is progressing ahead of schedule and is now expected to be operational in the fourth quarter of 2024," the company said in a quarterly earnings-related press release. "The project is expected to give the plant the optionality to upgrade approximately 50% of its current 470 million-gallon renewable diesel annual production capacity to SAF. With the completion of this project, DGD is expected to become one of the largest manufacturers of SAF in the world."
Valero's other efforts in the SAF market include its proposed upgrades to a blend-stock fractionation unit at its renewable diesel plant in Norco, Louisiana. The overhaul is designed to recover 386 million gallons per year of SAF from the two-train plant, which produces 982 million gallons per year of renewable diesel. The project remains in its permitting phase, but construction could begin as early as the fourth quarter. Subscribers can learn more from a detailed project report and plant profile.
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active and planned projects from Valero across the U.S. and Canada.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Click on the image at right for a graph detailing Valero's active and planned projects across the U.S. and Canada, by project type."We expect refining margins to remain supported by tight product balances and seasonably low product inventories ahead of the driving season," said Lane Riggs, the chief executive officer of Valero, in an earnings-related quarterly conference call. "Longer-term, product demand is expected is exceed supply even with the start of the new refineries this year and the limited announced capacity additions beyond 2025."
U.S.-based refiners are poised to see growing export potential from Mexico, according to Valero's analysts. The company's Mexican subsidiary believes the country will not be able to meet growing demand with its own refining capacity, despite an ongoing ramp-up at Petroleos Mexicanos' (Pemex) (Mexico City) Dos Bocas Refinery, and will rely to some degree on U.S. output.
Carlos Garcia, the general director of Valero's Mexican subsidiary, said Mexico is looking at a fuel deficit of as much as 500,000 barrels per day (BBL/d), given the current market demand of about 1.3 million BBL/d, even if Dos Bocas fulfills Pemex's prediction of about 340,000 BBL/d of output by September. "Even with added capacity from the new Dos Bocas refinery, Mexico cannot generate enough diesel, jet fuel and gasoline to meet demand," Garcia said in an interview with Bloomberg.
Valero is preparing for a series of capacity additions and operational improvements at its refineries along the U.S. Gulf Coast, including two at its 235,000-BBL/d Saint Charles Refinery in Norco, Louisiana. Valero is in the process of installing a new boiler unit to improve activity during startup and shutdown periods, and is debottlenecking its delayed coker by upgrading pumps and reconfiguring its piping to raise throughput capacity from 80,000 to 82,000 BBL/d. Subscribers can learn more from detailed reports on the boiler and delayed coker projects and a detailed plant profile.
Along the Texas Gulf Coast, Valero is proposing upgrades to the fluid catalytic cracker units (FCCUs) at its refineries in Three Rivers and Port Arthur. The company also is looking into reliability upgrades at the Crude Topper 1 and Crude Topper units at its refinery in Texas City, which currently produce 72,000 and 53,000 BBL/d, respectively. Subscribers can read detailed reports on the Three Rivers, Port Arthur and Texas City projects.
Last summer, Diamond Green Diesel LLC (DGD), which is a joint venture between Valero and Darling Ingredients Incorporated (Irving, Texas), started construction on the $315 million addition of a sustainable aviation fuel (SAF) unit at its renewable diesel plant in Port Arthur, Texas. The project, which is engineered by Burns & McDonnell Incorporated (Kansas City, Missouri), is expected to produce up to 235 million gallons per year of SAF. Subscribers to Industrial Info's Global Market Intelligence (GMI) Alternative Fuels Project and Plant databases can learn more from a detailed project report and plant profile.
"The SAF project at the DGD Port Arthur plant is progressing ahead of schedule and is now expected to be operational in the fourth quarter of 2024," the company said in a quarterly earnings-related press release. "The project is expected to give the plant the optionality to upgrade approximately 50% of its current 470 million-gallon renewable diesel annual production capacity to SAF. With the completion of this project, DGD is expected to become one of the largest manufacturers of SAF in the world."
Valero's other efforts in the SAF market include its proposed upgrades to a blend-stock fractionation unit at its renewable diesel plant in Norco, Louisiana. The overhaul is designed to recover 386 million gallons per year of SAF from the two-train plant, which produces 982 million gallons per year of renewable diesel. The project remains in its permitting phase, but construction could begin as early as the fourth quarter. Subscribers can learn more from a detailed project report and plant profile.
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active and planned projects from Valero across the U.S. and Canada.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
