
Valero Energy Corp. has completed the $230-million fluid catalytic cracking (FCC) unit optimization project on schedule and within budget at its 340,000-b/d St. Charles refinery in Norco, St. Charles Parish, La., about 25 miles west of New Orleans, the San Antonio-based operator said in reporting its third-quarter 2026 earnings on Oct. 22.
The FCC upgrade enhances the refinery’s ability to produce higher-value products, particularly alkylate and gasoline, positioning the site to capture premium margins as refining fundamentals remain underpinned by limited global capacity additions, Valero said.
Originally announced in 2021 as part of Valero’s long-term capital allocation strategy, the St. Charles FCC unit optimization is now operational and anticipated to strengthen the refinery’s competitive position in heavy crude processing and product slate optimization.
In its April presentation to investors, Valero said the FCC project was to include installation of a new compressor and upgrading of existing equipment to achieve an incremental 15,000-b/d FCC throughput rate using residual feedstock.
The project aims to improve product yields to increase the refinery’s incremental production of propylene by 3,000 b/d to fill the site’s downstream alkylation unit capacity to produce an incremental 6,000 b/d of high-value alkylate.
The FCC upgrade is also anticipated to yield an 8,000-b/d Incremental production of gasoline, according to the April presentation.
Completion of the FCC project marks a strategic milestone for Valero as the company delivered third-quarter 2026 results underscored by exceptional financial performance and operational execution. Valero reported net income of $6.8 billion for the third quarter, compared with $1.1 billion during the same period a year earlier.
Adjusted net income for the quarter was $6.8 billion, which was six times higher than its $1.1-billion adjusted net income in third-quarter 2025.
Refining segment powers windfall
The refining segment delivered the bulk of earnings gains, with the company reporting operating income of $8.8 billion for third-quarter 2026, nearly sevenfold higher than the $1.6 billion posted in third-quarter 2025. Adjusted operating income matched the reported figure at $8.8 billion, compared with $1.7 billion a year earlier.
Refining throughput across the operator’s total system averaged 3 million b/d for the quarter, maintaining near-record system-wide utilization rates.
“Our refineries operated at near-record utilization rates, providing a reliable supply of critical transportation fuels during the quarter,” said Lane Riggs, Valero’s chairman, chief executive officer, and president. The company’s ability to sustain high throughput reflects strong demand fundamentals and operational excellence, attributes that management said it expects to remain supportive through yearend.
Riggs noted that third-quarter 2026 performance underscores “the quality of our assets and our consistent operational, commercial, and financial performance,” attributing results to “the long-term strategy that we’ve been committed to for well over a decade.” Management’s remarks suggest Valero sees continued strength in refining fundamentals, driven by demand growth and constrained industry capacity expansions.
For 2026, Valero expects capital investments of about $1.7 billion, with about $1.4 billion directed to sustaining capital and the remainder allocated to optimization and growth projects across its refining and ethanol operations.




















