Valero Energy Corp to export ethanol for first time
According to reports, it is for the first time that Valero Energy Corp, which is among the biggest oil refiners, is looking forward to sell ethanol for export. The company based in San Antonio is the third-largest ethanol producer in the US. According to US trade sources, it has been providing export-grade ethanol to shippers and hiring tank space for it, making its way to major markets in Brazil and Asia.
For the time being, the company will be selling material on a freight-on-board basis. In due course, it will be looking forward to sell its material and third-party production directly to customers abroad. According to Valero spokesman Bill Day, "We are looking at increasing sales and expanding markets, including export markets".
He didn’t confirm details of the plan and revealed nothing about it. The decision highlights the competitive overseas market, where competition is increasing since US biofuels policy is fluctuating and companies want to sell in countries like the Philippines and Brazil, where government consents have assisted in increasing demand.
This will take Valero against Archer Daniels Midland Co, which is the nation’s top producer, Marquis Energy LLC that is held privately, and Pacific Ethanol. These companies are also looking forward to do business in the export market. The chemical is also fighting for market share with competitors like gasoline additives, such as methyl tertiary butyl ether (MTBE), that are utilized in order to oxygenate fuel and are used to a large extent in the Middle East and other regions.