Valero to build pipeline to transport gasoline, distillate in Canada

By: Phaedra Friend Troy

Valero Energy Corp. (VLO) is planning on building a 100,000 barrel-a-day gasoline and distillate pipeline to connect its refinery near Quebec City and a fuel storage location in Montreal.

Bill Day, executive director of media relations for Valero, confirmed that the company is planning the pipeline in connection with its refinery outside of Quebec City.

“That’s a project that our Canadian subsidiary Ultramar is working on,” he said.

With construction expected to commence by summer or fall 2010, the pipeline could be expanded to transfer up to 170,000 barrels of fuel a day with the addition of more pumps. However, there are no plans to expand the Quebec City refinery, a company spokesperson told Bloomberg.

The Quebec City refinery was brought online in October 1971 and has since undergone extensive upgrades to achieve a total throughput capacity of 235,000 barrels per day. Products from the refinery include gasoline, jet fuel, diesel, home heating oil and butane.

Currently, the Quebec City refinery transports products via tanker trucks, rail cars and barge.

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