Ultramar Diamond Shamrock Corp., San Antonio, said it plans to spend $40 million to expand capacity at its Quebec refinery to 190,000 b/d from 160,000 b/d. The expansion will reduce operating and intermediate feedstock costs plus produce another 20,000 b/d of gasoline, distillate, and jet fuel, as well as 10,000 b/d of cat-cracker feed, propane, and butane, says UDS.
The plan is subject to regulatory approval. If approved, the project should be complete in the second half of 2001.
The company noted it hopes the project will provide about 10 �/share accretion annually, starting in 2002.
"Our strategy is to grow earnings and returns through an integrated operations approach,'' said Jean Bernier, President of Ultramar Ltd., a subsidiary of UDS. "The expansion of our Quebec refinery is in line with this strategy and is a significant step in Ultramar's Canadian plan to move additional refinery volumes through our growing retail and wholesale marketing networks and provide new customers in Ontario and New England with a competitive source of refined products.
The company operates six refineries in the US and Canada with a total throughput capacity of 649,000 b/d.
