Blue Dolphin Energy Company (BDCO)

[jmjjw]

The nearest major to the Nixon unit is Valero's Choke Canyon/Three Rivers facility.

If there were the possibility of pipeline transport, one argument to make is that taking on the Nixon in some form, is an economical way to add Eagle Ford light crude capability, via upgrading/modernizing the Nixon, as opposed to adding capacity at Three Rivers.

There are of course lots of moving parts - this would be much more attractive if pipeline connectivity and capacity were available. The analysis of who is closer to the Eagle Ford comes into play, along with lots of other variables - RCN analysis to add net new light crude at Valero, vs. the costs of dealing with the Nixon infrastructure, etc.

Valero is one of the refiners that has projects underway related to condensate strippers, ADU projects for light crude, etc., and they are profitable.

It is a relatively "small world," and it is likely that BDCO and Valero management are aware of the opportunity.