Valero Energy Corporation (NYSE: VLO) today announced  Phase I expansion plans which will double the capacity of its existing North Texas and Oklahoma Panhandle area crude oil gathering system in order to accommodate increased crude production. The pipeline system expansion project, which is scheduled to be completed by the fourth quarter of this year, will increase the amount of crude oil available to be processed at the 170,000 barrel per day Valero McKee Refinery in the Texas Panhandle.

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

About Valero:
Valero Energy Corporation is a Fortune 500 company based in San Antonio with approximately 21,000 employees. The company owns or operates 15 refineries with a combined throughput capacity of approximately 2.8 million barrels per day. Valero is also a leading ethanol producer with 10 ethanol plants in the Midwest with a combined capacity of 1.1 billion gallons per year, and is one of the nation’s largest retail operators with approximately 5,800 retail and branded wholesale outlets in the United States, Canada and the Caribbean under the Valero, Diamond Shamrock, Shamrock, Ultramar and Beacon brands.  Please visit www.valero.com for more information.