CITGO Opens Ultra-Low Sulfur Diesel Unit at Lemont Refinery to Meet New Environmental Regulations

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Sep 16, 2010, 02:30 ET

HOUSTON, Sept. 16 /PRNewswire/ -- CITGO Petroleum Corporation announced that it has completed the construction and start-up of a major processing unit to produce Ultra-Low Sulfur Diesel (ULSD) at its Lemont, Illinois refinery. In compliance with Environmental Protection Agency (EPA) standards, the unit is equipped with the latest technology designed to reduce, by 98 percent, the sulfur content of diesel transportation fuel produced at the refinery.

"Projects such as our innovative ULSD facilities underline our commitment to the environment and communities we serve. I am proud to join with employees and community leaders to launch this innovative facility," said CITGO President and CEO Alejandro Granado. "These efforts are in alignment with the principles endorsed by our shareholder, Petroleos de Venezuela, S.A. (PDVSA), the national oil company of the Bolivarian Republic of Venezuela and come at an exciting time in CITGO's history as we recently celebrated our 100th anniversary. As we look to the future, our position as the third largest independent refiner in the U.S., commitment to emissions reduction and backing of Venezuelan crude reserves, soon to be certified as the largest in the world, put us in a strong position as we enter the next 100 years."

"The ULSD team, CITGO Lemont Refinery employees and local contractors never lost sight of what we were trying to achieve. We have built a facility that will benefit the local community and environment for many years to come," added Granado.

The new unit has a production capacity of 42,500 barrels per day (BPD) of ULSD, which constitutes the majority of Lemont's overall distillate production of 55,000 BPD refined from heavy crude. The steps involved in producing ULSD include adding hydrogen to remove the sulfur from the diesel and then recovering and converting those sulfur compounds into elemental sulfur. This is then sold into the fertilizer market, an additional step in the company's commitment to the environment.

The CITGO Lemont Refinery will now be able to produce 100 percent ULSD, in addition to other high-quality refinery products such as gasoline, jet fuel and other specialty middle distillate products. The multi-year, multi-million dollar capital investment behind the innovative ULSD facility, which helped create 800 contractor jobs for the local community, also included upgrades to manufacturing units for all refined products.

The CITGO Lemont Refinery employs more than 800 local residents on a full-time and contract basis in support of the local economy. While Lemont refinery employees produce high quality fuels for a large portion of the network of nearly 6,500 locally owned CITGO stations across the country, they also make a major positive impact on the community. Each year more than 2,500 volunteer hours and thousands of dollars are given in support of community programs such as Muscular Dystrophy Association, United Way and a variety of environmental and preservation programs.

In addition to Lemont, the CITGO Corpus Christi, Texas refinery will soon introduce their own upgraded ULSD facility that will be able to produce 100% ULSD. The CITGO Lake Charles Manufacturing Complex in Louisiana has been producing ULSD since 2006.

The new ULSD unit at the CITGO Lemont Refinery is a key addition to the company's state-of-the-art refining operations. Furthermore, according to data published by the National Petrochemical and Refiners Association for 2009, CITGO leads the industry in safe operations, with the lowest accident rate recorded for any other refiner with more than one refinery in the United States. CITGO is committed to supplying quality fuels and lubricant products, generating jobs and investing in social development programs each year. This dedication to people and communities across the country is a core principle of the company and is a driving force behind the innovative products and services the company provides.

CITGO, based in Houston, is a refiner, transporter and marketer of transportation fuels, lubricants, petrochemicals and other industrial products. The company is owned by PDV America, Inc., an indirect wholly owned subsidiary of Petroleos de Venezuela, S.A., the national oil company of the Bolivarian Republic of Venezuela.

For more information visit www.citgo.com

SOURCE CITGO Petroleum Corporation