LÉVIS, QC, Nov. 27, 2013 /CNW Telbec/ - The future of Quebec's refining
industry depends on having access to quality crudes at competitive
prices, and this means access to Western oil. This is the conclusion of
a submission presented today by Valero Energy Inc. (‟Valero") during
consultations conducted by the Agriculture, Fisheries, Energy and
Natural Resources Commission on the Pipeline 9B Reversal Project
proposed by Enbridge.
‟The future of refineries depends on huge investments and these
investments are made in the markets that are the most competitive. At
present, 90% to 95% of the operating costs of the Jean-Gaulin refinery
in Lévis are raw material-related. It is urgent for us to be able to
diversify our supply sources in order to compete with other North
American refiners which already benefit from Western oil at a lower
cost. There is no doubt that the reversal of Pipeline 9B is vital for
ensuring our competitiveness," explained Ross R. Bayus, President,
Canadian Operations, Valero Energy Inc. before the Commission.
Since 2008, six refineries have announced their closure in North
America's Northeast, including one in Montreal East in 2009, and more
recently, another in Dartmouth, Nova Scotia. The increasingly strict
regulations on products, which require massive investments, combined
with the recent recession, have led to the closure of these refineries
and several others that were considered more vulnerable. Only the
refineries that are operating in a competitive environment are able to
attract the investments needed for them to continue their activities.
‟Our challenge in a market undergoing profound change is for us to adapt
and even take the lead. Otherwise, we run the risk of becoming
marginalized and uncompetitive, despite the fact that, at Lévis, we own
a world class plant in which we have invested almost $2 billion since
2001. We are lucky to have the option presented by Pipeline 9B as an
immediate and safe solution," stated Mr. Bayus.
The Pipeline 9B reversal project would generate a total investment of
almost $200 million for Valero in Quebec, most of which would go to its
Montreal East facilities. This would entail the creation of about
200 jobs during the construction phase and 100 new permanent jobs
related to the use of state-of-the-art ships to carry the crudes from
Montreal to Lévis.
Valero is the largest independent refiner and distributor of petroleum
products in the world. Its assets include 16 refineries, with locations
spread across the United States from the West Coast to the Gulf of
Mexico, as well as in Canada and the United Kingdom, with a combined
throughput capacity of 3 million barrels per day. Through Valero Energy
Inc., its wholly owned subsidiary in Canada, it owns and operates the
Jean-Gaulin refinery in Lévis, which has a current refining capacity of
some 265,000 barrels per day, along with several other logistics
infrastructures, including the Montreal East oil terminal, the most
important of its kind in Canada, as well as the Pipeline Saint-Laurent
that links its Lévis refinery and Montreal facilities. Its Canadian
operations also make it a leader, especially in the field of industrial
and commercial sales of petroleum products, and as a supplier to
resellers and independent distributors. Valero Energy Inc. is also one
of the largest employers in Eastern Canada, in terms of the direct and
indirect employment it generates.
SOURCE: Valero Energy Inc.
For further information:
Michel Martin - Director, Public and Government Affairs
Telephone: 514 982-8211