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    Valero Invests in $40 Million De-sulfurization Unit

    Company to expand cleaner-burning gasoline capacity at McKee refinery.

    SAN ANTONIO -- San Antonio-based refiner Valero Energy Corp. has signed an engineering, procurement and construction contract with CB&I Matrix, an engineering, procurement and construction company, to expand its cleaner-burning gasoline capacity at its McKee refinery, reported the San Antonio Business Journal.

    CB&I will design, build and install a 35,000-barrel-per-day (bpd) gasoline de-sulfurization unit at Valero's 170,000 bpd refinery. Company officials would not reveal an exact figure for the engineering and construction contract. However, the contract is valued between $40 million and $60 million.

    Once complete in the fall of 2005, the de-sulfurization unit will reduce the sulfur content of naphtha feedstock and thus allow Valero to more cost-effectively comply with Environmental Protection Agency Tier II gasoline specifications.

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