Jun. 12--Mike Patel knew little about Valero Energy Corp. more than 18 months ago, when Don Bowers of Superior Petroleum suggested the brand for Patel's gasoline-convenience store along Murtland Avenue in Washington.

"He told me Valero was a big company and that it was looking to expand into the area," said Patel, who already was operating a BP/Co-Gos gasoline-convenience store combination in nearby Houston.

With BP, Sunoco and ExxonMobil locations already within stone-throwing distance of the former GetGo location, Patel took gasoline distributor Bowers' suggestion and opened Western Pennsylvania's first Valero-branded station on New Year's Day 2008.

Today, Patel is smiling, Bowers is smiling and Valero's retail executives likewise are grinning.

Valero's teal-and-yellow-paint scheme is visible on 12, soon to be 15, area locations -- with that total expected to more than double within 12 months.

San Antonio, Texas-based Valero -- better known as North America's largest independent crude-oil refiner -- is rapidly growing its retail business, primarily through third-party distributors, such as Superior Petroleum of Ross, which either own their own retail facilities or contract with an independent operator.

"We consider Western Pennsylvania a very desirable market," said Joe Maratea, Valero's vice president of Wholesale Marketing for the North Region, which includes Pennsylvania. "We hope to have between 30 and 40 locations open this time next year."

"Even though retail is a very small portion of its operations, it's been very profitable for Valero," said Brian Youngberg, an energy analyst who follows the company for Edward Jones & Co. of Des Peres, Mo.

"Refining is responsible for about 90 percent of Valero's earnings, but retailing provides a nice complement to that business. And it provides an outlet for some of its finished product."

Valero touts its "All-American gasoline" because it's a U.S.-based company selling a product nationwide.

One reason Valero likes Western Pennsylvania is that the region is connected via its own pipeline to its Delaware City, Del., refinery. A portion of the refinery's 8.8-million-gallons-per-day capacity flows here.

"I was looking for a third brand to distribute -- after BP and Citgo -- after Citgo told us two years ago, without explanation, it no longer wanted to brand more stations," Bowers said. He called an old friend who worked for Valero, liked what he heard about its expansion plans and signed on.

Many of Patel's customers initially knew little about Valero but like the Washington location and its 2,800 square feet of convenience- store goods.

"I've been coming here since it opened," customer Matthew Mayer, of Washington, said Thursday. "It's convenient to me when I'm going to jump on the highway (nearby Interstates 70 and 79)."

"I like that they have fresh-made sandwiches. And I'm a coffee drinker, so I like that," said Lauren Buletza, of Brownsville, after she gassed up yesterday.

Valero has been a part of the retail gasoline business since only 2000, when it acquired a California refinery and 80 retail sites in the San Francisco Bay area, as well as 270 wholesale locations throughout California.

Today, the Valero logo hangs above nearly 5,000 locations in 44 states. The company also sells what Maratea calls a "significant amount" of unbranded Valero product to other retailers nationwide.

The company is named after its hometown icon, "Mission San Antonio de Valero" -- the Alamo.

This year Valero entered the ethanol industry by acquiring seven Midwest plants for $477 million. Last month Valero purchased for $725 million a 45 percent interest in a diesel refinery in the Netherlands.

Rick Stouffer can be reached via e-mail or at 412-320-7853.

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