Texas has long been the backbone of the United States energy market. With its vast natural energy resources, such as gas and oil, the state has become the go-to destination for anyone looking to cash in on the boom of energy resource production in the US. Now, Valero, a major US energy firm with operations that span North America, has announced that it plans to modernize its crude distillation unit at its Port Arthur refinery in February 2026, paving the way for the continued growth of the conventional oil and gas market in the United States.
Valero has become a major player in the North American oil and gas markets
Valero is a company that has become as part of the Texas landscape as American Football. The company has over 10,000 employees and boasts 15 refineries in the United States, Canada, and the United Kingdom, which feature 3.2 million barrels per day (bpd) of high-complexity throughput capacity. The company is based in San Antonio and has recently announced its plans for a major upgrade and modernization package for its Port Arthur refinery.
Additionally, Valero has 12 ethanol plants in the U.S. with 1.7 billion gallons per year of production capacity, making it a premier petroleum refiner anywhere in the world. In order to keep up with the new directive issued by the current US President, Donald Trump, Valero is aiming to modernize operations at its crude distillation unit at the Port Arthur facility.
“We are the world’s premier independent petroleum refiner and a leading producer of low-carbon transportation fuels. We’re proud of fueling lives with a commitment to safe, reliable and environmentally responsible operations. This will always be our top priority. – Valero website statement
The US conventional oil and gas markets have been boosted by the new directive issued by the President that calls for a substantial increase in America’s oil and gas output capacity. Notably, this has been met with substantial backlash from the international community, which has been pleading with the US to allow more renewable energy generation, but the evidence suggests those pleas are falling on deaf ears.
Valero’s refinery is set to receive a major upgrade next year to handle more resources
Valero’s refinery in Port Arthur, Texas, has a reported capacity to produce 380,000 barrels per day, and according to people familiar with plant operations, the crude distillation unit will be getting a major upgrade and will be modernized to meet the expected increase in demand over the coming years. The company will begin with the planned upgrade in February next year, although a Valero spokesperson could not confirm the timeline or schedule.
Several insiders and sources note that the plan is to make improvements to the processing of bottoms, which are heavy, gunky, residue crude oils usually sent to cokers or used to make asphalt. Crude distillation units start the refining by converting crude oil into feedstocks. The expansion of the US oil and gas market has been a sight to behold, with the Eiger Express Pipeline expansion set to increase the US’s gas processing power in the new year.
Valero hopes to keep operations running while the upgrades are being made
A person familiar with operations on site at the Port Arthur refinery has noted that Valero hopes to keep the AVU 146 unit running while upgrades are being carried out. This marks the continued expansion of the American oil and gas sectors under the current administration. While other projects are set to follow suit and modernize and upgrade operations in the near future, such as the planned upgrade of the Algonquin Gas Transmission Pipeline, the US energy market is looking stronger than ever.
