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Released January 31, 2025 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Valero Energy Corporation (NYSE:VLO) (San Antonio, Texas) faced challenging market conditions in its refining business for most of 2024, but saw a bright spot in its renewable diesel business. While the company saw a 68% decrease in its earnings from 2023 to $2.8 billion, the renewable diesel segment doubled its operating income to $170 million. Industrial Info is tracking more than $1.4 billion worth of active and proposed projects across the U.S. and Canada from Valero, more than half of which is attributed to refining projects in Texas and Louisiana.
Click on the image at right for a graph detailing Valero's active and proposed projects across the U.S. and Canada, by state or province.
Valero is preparing for a series of upgrades this year to fluid catalytic cracker units (FCCU) at some of its key refineries. These include an $18 million revamp of the FCCU at its Saint Charles Refinery in Norco, Louisiana, partly to replace antiquated components, and $12 million in upgrades to its refinery in Three Rivers, Texas, to improve gasoline yields. These FCCUs have capacities of 92,000 and 24,000 barrels per day (BBL/d), respectively. Their projects are set to kick off in the current quarter.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Petroleum Refining Project Database can read detailed reports on the Norco and Three Rivers projects.
Later this year, Valero expects to begin work on a $20 million FCCU upgrade at its refinery in Memphis, Tennessee, which is expected to improve gasoline production from the 69,000-BBL/d unit. At present, the project is set to last a few weeks in the fourth quarter. Subscribers can learn more from a detailed project report.
Most of the Valero FCCUs preparing for upgrades use technology from Honeywell International's (NASDAQ:HON) (Charlotte, North Carolina) UOP Russell subsidiary. One exception is Valero's refinery in Ardmore, Oklahoma, which uses Technip Energies' (Nanterre, France) Stone & Webster Process Technology. This 30,000-BBL/d unit is set for a $40 million upgrade in the coming months. Subscribers can learn more from a detailed project report.
"Looking ahead, refining margins should be supported by low light-product inventories ahead of the driving season," said Lane Riggs, the chief executive officer of Valero, in a quarterly earnings-related conference call. "And longer term, we still expect product demand to exceed supply with the announced refinery shutdowns this year and the limited capacity additions beyond 2025, supporting long-term refining fundamentals."
Despite a slight decline in year-over-year sales volumes, Valero's Renewable Diesel segment, which consists of the Diamond Green Diesel (DGD) joint venture with Darling Ingredients Incorporated (Irving, Texas), enjoyed stronger margins in 2024. The $315 million addition of a sustainable aviation fuel (SAF) unit at the DGD plant in Port Arthur, Texas, was completed in the fourth quarter and is now fully operational, allowing the facility to produce up to 235 million gallons per year of SAF.
DGD is proposing a series of upgrades to its sister facility in Norco, near the Saint Charles Refinery. The joint venture hopes to upgrade its vacuum distillation unit to recover 386 million gallons per year of SAF from the facility's 982 million gallons per year of renewable fuel production. Subscribers can read detailed reports on the Port Arthur and Norco projects.
Valero expects its 2025 capital expenditures to come in at about $2 billion, with its refining throughput remaining robust across various regions. Renewable diesel sales volumes are expected to reach 1.2 billion gallons.
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 detailed reports for active and proposed projects across the U.S. and Canada from Valero.
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 proposed projects across the U.S. and Canada, by state or province.Valero is preparing for a series of upgrades this year to fluid catalytic cracker units (FCCU) at some of its key refineries. These include an $18 million revamp of the FCCU at its Saint Charles Refinery in Norco, Louisiana, partly to replace antiquated components, and $12 million in upgrades to its refinery in Three Rivers, Texas, to improve gasoline yields. These FCCUs have capacities of 92,000 and 24,000 barrels per day (BBL/d), respectively. Their projects are set to kick off in the current quarter.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Petroleum Refining Project Database can read detailed reports on the Norco and Three Rivers projects.
Later this year, Valero expects to begin work on a $20 million FCCU upgrade at its refinery in Memphis, Tennessee, which is expected to improve gasoline production from the 69,000-BBL/d unit. At present, the project is set to last a few weeks in the fourth quarter. Subscribers can learn more from a detailed project report.
Most of the Valero FCCUs preparing for upgrades use technology from Honeywell International's (NASDAQ:HON) (Charlotte, North Carolina) UOP Russell subsidiary. One exception is Valero's refinery in Ardmore, Oklahoma, which uses Technip Energies' (Nanterre, France) Stone & Webster Process Technology. This 30,000-BBL/d unit is set for a $40 million upgrade in the coming months. Subscribers can learn more from a detailed project report.
"Looking ahead, refining margins should be supported by low light-product inventories ahead of the driving season," said Lane Riggs, the chief executive officer of Valero, in a quarterly earnings-related conference call. "And longer term, we still expect product demand to exceed supply with the announced refinery shutdowns this year and the limited capacity additions beyond 2025, supporting long-term refining fundamentals."
Despite a slight decline in year-over-year sales volumes, Valero's Renewable Diesel segment, which consists of the Diamond Green Diesel (DGD) joint venture with Darling Ingredients Incorporated (Irving, Texas), enjoyed stronger margins in 2024. The $315 million addition of a sustainable aviation fuel (SAF) unit at the DGD plant in Port Arthur, Texas, was completed in the fourth quarter and is now fully operational, allowing the facility to produce up to 235 million gallons per year of SAF.
DGD is proposing a series of upgrades to its sister facility in Norco, near the Saint Charles Refinery. The joint venture hopes to upgrade its vacuum distillation unit to recover 386 million gallons per year of SAF from the facility's 982 million gallons per year of renewable fuel production. Subscribers can read detailed reports on the Port Arthur and Norco projects.
Valero expects its 2025 capital expenditures to come in at about $2 billion, with its refining throughput remaining robust across various regions. Renewable diesel sales volumes are expected to reach 1.2 billion gallons.
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 detailed reports for active and proposed projects across the U.S. and Canada from Valero.
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).
