Caltex to invest in increasing capacity

Australia’s largest oil refiner Caltex Australia Ltd. has stuck to its forecast of A$100 million (US$76.39 million) in additional earnings from its current round of refinery investments. Newly appointed CEO Des King said that Caltex expects to invest between A$300 million (US$229.18 million) and A$350 million (US$267.38 million) annually over the next two to three years to increase refining capacity. After 2008, Caltex will look at modifying its plants to refine light, sweet crude as well as heavy, sour crudes which are less expensive. Caltex will also focus more on diesel fuel to take advantage of increasing consumption fueled by higher levels of industrial activity and greater use of diesel-powered cars. (August 11, 2006)