April 14, 2009 at 5:33 pm #3134
Pemex Picks Hidalgo Site for $10 Billion Oil Refinery (Update1)
By Andres R. Martinez
April 14, 2009 (Bloomberg) — Petroleos Mexicanos, the state- owned oil company, picked Hidalgo state, central Mexico, as the site for a 300,000 barrel-a-day oil refinery.
The plant, costing as much as $10 billion, will be built in Tula providing Hidalgo secures the necessary land within the next 100 days, Pemex Chief Executive Officer Jesus Reyes Heroles said today at company headquarters in Mexico City. The plant may take more than four years to complete, he said.
Pemex is building its first oil refinery in three decades to keep up with rising gasoline demand as more Mexicans buy automobiles. Demand for the fuel in Mexico, which imports about 40 percent of the fuel consumed domestically, may gain 5 percent a year through 2012, according to the Energy Ministry. The plant would boost Pemex’s refining capacity by 19 percent.
The company needs about 1,729 acres (700 hectares) for the plant and will build the refinery in Salamanca state if Hidalgo is unable to secure the land, Reyes Heroles said. Pemex also considered Salina Cruz as a potential site, he said. Tula, Hidalgo is located 72 miles (116 kilometers) northeast of Mexico City.
Mexico’s six refineries were able to process 1.54 million barrels a day in 2007, according to Energy Ministry figures. The plants ran at about 80 percent capacity in 2007.
Pemex produced 451,500 barrels of gasoline a day in 2008. Mexican law doesn’t allow companies other than Pemex to refine or sell crude and its refined products. In 2007, the existing refinery at Tula processed 289,000 barrels of crude oil a day, according to the company.
Opposition lawmakers rejected a proposal by President Felipe Calderon to open the refining industry to private investment. Instead, Congress and Calderon agreed to allow Pemex to hire foreign and private oil companies to explore for crude, as Pemex seeks to offset the fastest drop in output since 1942.
Allowing foreign companies to operate refineries and explore for oil would have freed up Pemex to spend its money on more exploration, Calderon has said.
Pemex began a program to upgrade its refineries 13 years ago. So far, two of the upgrades have been completed.
To contact the reporter on this story: Andres R. Martinez in Mexico City at email@example.com; Last Updated: April 14, 2009 15:31 EDT
April 14, 2009 at 5:34 pm #6154
Here is update on the Pemex new Grassroots Refinery & Coker project (I think?) – site selection is Tula Hildago (with backup site to be Salamanca if land isnt available).
The original sites for Pemex’s 7th & new Grassroots Refinery were Guatemala, or Panama. But is now scheduled for Mexico site (unless the article has the Tula & Salamanca expansions confused with the Grassroots expansion here).
I know the article is wrong about the reference to only 2 Pemex Expansions, there have been a number of upgrades at most of the six refineries including addition of 3 new delayed cokers now at Caderyeta, Madero & Minatitlan (recently completed/completing). The Salina Cruz, Tula (has existing Flexicoker there now) and Salamanca were also scheduled for some Distillate & Coker upgrading/additions as well.
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