Pipeline Saint-Laurent project - Ultramar now has full backing of Quebec

LÉVIS, QC, April 6 /CNW Telbec/ - More than five years after filing its project notice with the Quebec department of sustainable development, Environment and Parks, Ultramar, today, is very proud to have the full support of the Quebec government for its Pipeline Saint-Laurent project. On March 17, 2010, Ultramar obtained the last four government decrees that will allow, at the appropriate time, to begin construction work covering all 32 municipalities on the pipeline route. This step completes the project's evaluation process.

Now that it has the full backing of the Quebec government, Ultramar will be able to complete the last steps required in the preparation and planning process, once it obtains final approval from its Board of Directors, so that some of the work may begin in the fall of this year and the pipeline is put in operation in 2012.

Mr. Jean Bernier, President of Ultramar Ltd., said: "We are pleased that the Quebec government has recently made this significant gesture, confirming its full support for our pipeline project linking the Jean-Gaulin refinery to the Montreal East terminal. These decrees allow us to resolutely advance towards the realization of this important link between our refinery and the Montreal market, thereby helping to secure energy supplies to the Montreal area and the entire Western region of Quebec. Consequently, this is good news not only for us but also for all Quebecers."

Ultramar will now go ahead to finalize the engineering phase and prepare the execution of work required. The company's liaison agents will proceed to conclude easement options with owners who do not yet have an agreement with Ultramar. To date, over 80% of owners have signed such an option.

A structuring project, approved further to a comprehensive consultation process

These four decrees now conclude five years of work where Ultramar demonstrated it has met environmental requirements related to the project, while also illustrating its rationale. It is worth mentioning that the Pipeline Saint-Laurent project has gone through a long process involving successively, among others, presentations to the environmental public hearings bureau (BAPE), the Canadian Environmental Assessment Agency, the agricultural land protection commission, the Quebec administrative tribunal and the Court of Quebec.

This project of nearly $350,000,000 will allow to substantially reduce the number of unit trains circulating in the Lévis-Montreal corridor, resulting in significant gains, in terms of environment protection as well as safety, for the population and from a supply perspective. The project offers many advantages. Transportation via a pipeline is clean, reliable and efficient. It is a major element for the energy security of Quebec, allowing Ultramar to secure even further its supplies to the Greater Montreal region, and ensuring uninterrupted supplies during winter. It will also allow a reduction in greenhouse gas emissions of nearly 30,000 tons per year.

About Ultramar

Ultramar Ltd., a subsidiary of Valero Energy Corporation (VLO on the New York Stock Exchange), owns and operates a refinery, whose current production capacity is 265,000 barrels of oil per day, at Lévis, near Québec City. It markets gasoline and diesel fuel to a large group of industrial and wholesale customers and via a network of some 830 service stations and convenience stores and 85 cardlocks, in addition to selling home heating oil to about 140,000 customers. Headquartered in Montreal, Ultramar employs over 3,700 persons and its refining, distribution and retail sales networks contribute to supporting more than 10,000 jobs, making it one of the largest employers in Eastern Canada. For more information on Ultramar, visit the Company's website at http://www.ultramar.ca.


For further information: For further information: Louis Forget, Vice President, Public and Government Affairs, Ultramar Ltd., (418) 835-8001, (514) 499-6442, Cell phone: (514) 386-7395, louis_forget@ultramar.ca; www.pipelinesaintlaurent.ca; Source: Ultramar Ltd.

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