Ultramar to invest $200 million in Quebec

Ultramar to invest $200 million in Quebec

The Texan oil company Valero, which operates under the Ultramar banner in Quebec, has reconfirmed its intention to invest $ 200 million in Quebec if the Enbridge moves their pipeline 9 towards eastern Canada.

The company had already announced its intention, but it was confirmed recently by Michael Martin, Senior Director of Public Affairs at Ultramar.

“This information was again mentioned a few days ago by the CEO in Valero, during a meeting with financial analysts,” said Mr. Martin.

The regions of Montreal and Quebec City would benefit greatly from the money invested, he said.

“If the reversal of the Enbridge’s Line 9 takes place, as it is our great hope, we will invest $ 100 million to our terminal facilities in Montreal East,” said Michel Martin.

“We will then be able to transit the oil pipeline to storage facilities and then forward it to the port. From there, we will put it on ships to send to the refinery in Lévis, where we will invest $30 million to make modifications. The remainder of the money would go towards $50 million for the acquisition of transport ships.”

Valero sees a competitive advantage in the use of oil from western Canada, which costs $20 to $30 less per barrel.

“It is clear that there is a difference from the oils of the Atlantic basin, where we exclusively source , said Mr. Martin. All oils used by us come from Africa, the Caucasus and overseas territories. Their prices are in line with that of Brent in the North Sea, which is higher than that of the west, especially Canadian crude oil from Alberta. ”

Ultramar facilities employ 500 people in Lévis and sixty in Montreal.

The company hopes that the federal government will give the green light to shift the pipeline. “The project seems, at least from our point of view, be very logical. However, we cannot assume the decision has been made,” he said.
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LifeinQuebec.com Staff Writer

Categories: Business

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