Valero Energy said its board approved a $1.4 billion expansion project at its oil refinery in St Charles, Louisiana, that would boost the plant's crude processing capacity and output of ultra-low-sulfur distillates.

“With ultra low sulfur diesel, we figure that is where the major amount of demand growth will be,” said Bill Day, a Valero spokesman.
 The project, which is scheduled to be completed by 2010, includes a new hydrocracker plus 45,000 and 10,000 bpd expansions to the crude and coker units, respectively, Valero said in its earnings statement.