Valero seeks bonds, eyes possible expansion

Valero Energy Corp., exploring a possible expansion of its Norco refinery, is seeking approval from the St. Charles Parish Council for $1 billion in so-called “GO Zone” bonds.

Officials with the San Antonio-based Valero said they are trying to line up permits and financing before deciding whether to expand the refining capacity from 220,000 barrels of oil per day to 380,000 barrels a day. Environmental permits were applied for last fall.

Valero wants the council to approve $1 billion in Gulf Opportunity Zone bonds. Bonds and tax incentives were made available under a federal act passed after the devastating 2005 hurricanes and meant to help rebuild storm-battered economies.

The council is scheduled to consider a resolution supporting the project Monday. Any deal still would need approval from the State Bond Commission.

The St. John the Baptist Parish Council recently gave its blessing to $1 billion in Gulf Opportunity bonds to Marathon Oil Co., which is planning an expansion of its Garyville refinery.

Albert Laque, president of St. Charles Parish, said the Norco project would be good for the parish.

“These are good jobs, and Valero is a good neighbor,” he said.