Tuesday, June 22, 2010

Valero to increase capacity of pipelines to McKee refinery

Valero Energy Corp. has announced plans to double the size of its crude oil gathering system in the Texas and Oklahoma regions. The company plans to expand capacity of its McKee refinery in Sunray, Texas, which has a feedstock throughput of about 170,000 b/d currently.
The start of operations at Valero’s McKee refinery dates back to 1933. The refinery had several major upgrades over the years.
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.
Valero’s McKee project involves expanding pipelines in the Texas panhandle between Oklahoma and New Mexico and the Oklahoma panhandle between Texas and Kansas. The project also requires looping of the existing pipeline from a storage facility in Perryton, Texas, and adding pump stations and storage facilities.
Valero expects the project to be completed quickly since most of the infrastructure and right-of-way is already in place. The scheduled completion date for the project is by fourth quarter of 2010.

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