Page 11 - NorthAmOil Week 05 2023

NorthAmOil PROJECTS & COMPANIES NorthAmOil

Valero starts up new Gulf Coast

renewable diesel, naphtha plant

TEXAS VALERO Energy’s Diamond Green Diesel The joint venture’s segment sales volumes
Holdings (DGD) unit has started up a second averaged 2.4mn gallons (9.1mn litres) per day in
renewable diesel and renewable naphtha plant the fourth quarter of 2022, which was 851,000
on the US Gulf Coast, to produce sustainable gallons (3.22mn litres) per day higher than in the
aviation fuel. fourth quarter of 2021. The higher sales volumes
A final investment decision (FID) was also were attributed to the impact of additional vol-
announced on January 31, 2023, said Darling umes from the expansion of DGD’s older plant,
Ingredients, a 50:50 joint venture partner with in St Charles, Louisiana, and the start-up of Crude supplies
Valero. operations in Port Arthur.
The commissioning and start of production Valero further reported net income attributa- have been tight
at the facility, in Port Arthur, Texas, took place in ble to stockholders of $3.1bn, or $8.15 per share,
the fourth quarter of 2022. for the fourth quarter of 2022 and $11.5bn, or but the market
The plant has a capacity of 470mn gallons $29.04 per share, for the year, representing its
(1.78bn litres) per year of renewable diesel and best year ever. The company’s net income attrib- for refined
20mn gallons (76mn litres) per year of renewable utable to shareholders in the fourth quarter of products has
naphtha. It is located at a 395,000-barrel per day 2021 was $1.0bn, or $2.46 per share. For the
(bpd) refinery operated by Valero, the world’s whole of 2021, it was $930mn, or $2.27 per share. been buoyant
largest independent petroleum refiner and the Valero reduced its debt by $2.7bn in 2022,
world’s second-largest renewable fuels producer. bringing its aggregate debt reduction since the with robust
Following the start-up in Port Arthur, the second half of 2021 to $4.0bn.
DGD joint venture owns two renewable diesel Crude supplies have been tight but the mar- US sales and
plants in the Gulf Coast region. Together they ket for refined products has been buoyant with exports.
have a production capacity of around 1.2bn gal- robust US sales and exports since Russia’s inva-
lons (4.54bn litres) per year. sion of Ukraine in February.
In its fourth-quarter 2022 earnings report, “Looking ahead, we expect low product
Valero said that its renewable diesel segment, inventories and continued increase in product
which consists of the two-plant DGD joint ven- demand to support margins, particularly for
ture, achieved $261mn of operating income for US coastal refiners,” said Valero’s CEO, Joseph
the quarter. That was compared with $150mn for Gorder, during an earnings call analysts.™
the fourth quarter of 2021.

Week 05 02•February•2023 www. NEWSBASE .com P11