Keystone XL would benefit LyondellBasell Houston refinery: CEO

30 September 2013 21:26  [Source: ICIS news]

HOUSTON (ICIS)--The completion of the Keystone XL pipeline would benefit LyondellBasell's Houston Refinery since it is already processing heavy crudes from Venezuela and Mexico, the company's CEO said on Monday.

If completed, Keystone XL would enable oil pipeline shipments from the oil sands in Canada's Alberta province, as well as from North Dakota’s Bakken shale region, to reach refineries on the US Gulf Coast.

Canada's oil sands are heavy and currently sell at a steep discount, said Jim Gallogly, LyondellBasell CEO.

He made his comments on the sidelines of the opening ceremony of the company's Houston Technology Center, a new research and development (R&D) site.

"We as a company have always supported that pipeline being built," Gallogly said.

The company's Houston refinery "is absolutely, perfectly fit to take that heavy crude from Canada and process it here", Gallogly said.

However, the pipeline needs final US approval.

"It would be a wonderful thing for our country if it would be approved," he said. "Why wouldn't we want a secure source of cheap feedstock to supply the refineries that we have today from a neighbour up north?"

Gallogly would not speculate as to whether the pipeline would eventually get approved.

By: Al Greenwood
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