PRESS RELEASE For immediate publication ULTRAMAR PLANS TO BUILD

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					                                                                           PRESS RELEASE
                                                                    For immediate publication



                     ULTRAMAR PLANS TO BUILD A PIPELINE
                        FROM LÉVIS TO MONTREAL EAST


Montreal, February 14, 2005 – Ultramar Ltd., the Montreal-based petroleum company,
announced today that it is pursuing studies related to the construction of a pipeline from its Lévis
refinery, near Quebec City, to its Montreal East distribution terminal, via the south shore of the
St. Lawrence River. The pipeline representing an investment of over $200 million would
generate approximately 2,000 direct and indirect jobs during the construction period and 12
permanent jobs, once in operation.

During the next few weeks, Ultramar will meet with municipal representatives and residents who
live within the corridors contemplated. Jean Bernier, President of Ultramar, said: «We want to
inform residents as well as their elected representatives, about our project and obtain their
comments on the alternatives under consideration. Their observations, as well as the various
environmental studies that we will be conducting, will allow us to determine the best route as
well as its overall feasibility.»

The project will be submitted for approval to the various government authorities at the federal,
provincial and municipal levels, including the Quebec Environment Department and the Quebec
agricultural land protection commission (CPTAQ). The project will also be subject to an
environmental impact assessment process by the Office for public environmental hearings
(BAPE), under the Environment Quality Act. The construction of the 235-255 km pipeline,
depending on the selected route, could start in late summer 2007 and come on stream at the end
of 2008.

According to Jean Bernier: « Refined products are moved from our Lévis plant to our various
terminals and bulk plants by tank truck, conventional train, ship and unit train, the last two
accounting for most of the volume carried from Lévis to Montreal East. Unlike the other means
of transportation, the pipeline has the advantage of not being exposed to weather conditions,
particularly in winter when demand is high. Because a pipeline provides a continuous, reliable
and efficient flow of product with little impact on the environment, it would be a great addition to
our transportation system.»

Higher demand for refined petroleum products over the last few years and a projected increase in
the near future translate into larger volumes between Lévis and Montreal East. In this context, a
pipeline would allow Ultramar to attain greater logistical flexibility. «Although we will keep
using all current means of transportation, we feel that adding the pipeline would optimize
product movement from Lévis to Montreal East », Mr. Bernier concluded.
                                               -30-

Ultramar Ltd., a subsidiary of Valero Energy Corporation (NYSE : VLO), owns and operates a
refinery that currently has a production capacity of 215,000 barrels of oil per day at Lévis (Saint-
Romuald), near Quebec City. It markets gasoline and diesel through a network of approximately
1,000 retail outlets, 87 cardlocks, and sells heating oil to some 155,000 customers. Ultramar,
which is headquartered in Montreal, employs more than 3,500 persons. Its refining, distribution
and retail sales networks support over 10,000 jobs, making Ultramar one of the largest employers
in Eastern Canada. For more information about Ultramar, visit the company’s website at:
http://www.ultramar.ca.


Contact :

Louis Forget
Vice President, Public and Government Affairs
(514) 499-6442/(418) 835-8001
louis_forget@ultramar.ca