Valero’s $1.4 billion expansion of its St. Charles Parish refinery has been pushed back by two years due to the downtrodden economy, with construction set to begin in 2011.
In December, Valero announced that the project, which called for a new hydrocracker unit to increase production of ultra low sulfur diesel, was moving ahead on schedule and was expected to be complete by the end of 2010. However, those plans changed.
“In our fourth-quarter earnings announcement and a conference call with Wall Street analysts on Jan. 27, Valero announced that the St. Charles hydrocracker project completion would be delayed until 2012,” Valero spokesman Bill Day said. “This is so that Valero can reduce its overall capital expenditure budget in the face of the economic downturn.
“Valero is still committed to the project and believes it is a good long-term strategic fit for the company.”
The project, which will create between 30 and 50 permanent jobs and between 1,500 and 2,000 construction jobs during construction, will create 49,000 barrels of diesel fuel and 11,000 barrels of gasoline per day. The project will also include an expansion of the crude unit to 235,000 barrels per day
“Equipment for the project’s construction has been ordered and will be delivered, and site preparation is under way, but the completion won’t take place until 2012,” Day said.
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