Valero plans crude capacity expansion at McKee refinery in Texas

Source: Valero

Valero Energy Corporation (NYSE: VLO) plans to expand the crude unit capacity of its McKee refinery by 25,000 barrels per day. The refinery will process West Texas Intermediate crude oil from Midland to feed the increased charge rate. The expansion project, which will take place over the next three years, will increase the amount of crude oil available to be processed at the McKee refinery to 195,000 bpd.

The expansion plans follow the previously announced Panhandle crude gathering system expansion project, which is nearing completion. That project involves looping an existing pipeline from Valero’s storage facility in Perryton, Texas, as well as building additional pump stations and storage facilities to bring more locally produced crude to the McKee refinery.

“These expansion plans will enable Valero to capitalize on the production of West Texas and locally produced crudes,” said Joe Gorder, Valero’s Executive Vice President and Chief Commercial Officer. “The McKee refinery will have more flexibility and more options, and that benefits Valero as well as the surrounding area.” 

The Valero McKee Refinery began operations in 1933 with expansions and developments to the present total feedstock throughput of 170,000 barrels per day (BPD). Situated in the heart of the Texas Panhandle, the McKee refinery has access to crude oil from northern Texas, Oklahoma, southwestern Kansas and eastern Colorado through an extensive network of crude oil pipelines, making it one of the most well-connected plants in Valero's system.



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