Valero To Double Crude Capacity Of Texas-Oklahoma Gathering System

August 2010 Vol. 237 No. 8

Valero Energy Corp. will double the capacity of its North Texas and Oklahoma Panhandle area crude oil gathering system to accommodate increased crude production.

The Phase I expansion, which is scheduled to be completed later this year, will increase the amount of crude oil available to be processed at the 170,000-bpd McKee Refinery in the Texas Panhandle.

The project will involve looping existing pipeline from Valero’s storage facility in Perryton, TX, additional 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.

“This is a quick and cost-effective expansion that will allow us to serve area producers who have steadily been increasing their crude production,” said Joe Gorder, Valero’s executive vice president for Marketing and Supply. “It will also give us the capability to accommodate even more production in the future.”