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Mexico to Expand Refinery in 2008
Mexico to Complete Refinery Expansion in Second Half of 2008Friday, December 14, 2007 MEXICO CITY (AP) — Mexico’s state-owned oil company plans to complete an expansion of one of its refineries in the second half of next year, part of a plan to reduce gasoline imports, the Energy Department said in a report.
The $2.5 billion project will expand output at Petroleos Mexicanos’ Minatitlan refinery by 100,000 barrels a day to 249,000 barrels a day, according to the report, issued earlier this week.
Because of years of underinvestment in its refining network, the company, known as Pemex, currently imports 40 percent of its gasoline, even though it produces 3 million barrels of crude oil a day.
The Minatitlan expansion is part of a $20.7 billion plan to boost refinery output by 39 percent to 1.8 million barrels a day in 2016, up from 1.3 million barrels a day this year.
The expansion plan hinges on a new 300,000-barrel-a-day refinery, set to be completed in 2015 — if Pemex has enough funds for the $8.8 billion project.
Mexico ranks 15th in global refining capacity, but the only refinery that saw a significant expansion over the past decade was Cadereyta, where output rose to 275,000 barrels a day last year from 235,000 barrels a day in 1996, mainly by producing more diesel fuel.
Pemex also plans to upgrade the Salamanca and Tula refineries, in 2012 and 2013, respectively.
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This update on Pemex Minatitlan refinery expansion mentions the previous Cadereyta Refinery and the next expansions at Salamanca and Tula refineries. But it is entirely wrong that Cadereyta is the only completed expansion this decade, leaves out the expansions at Madero & Salina Cruz refineries.
It also fails to mention that all these expansions (including the new 7th Refinery for Panama or Guatemala) have/are adding new coking units. The Cadereyta and Madero cokers have been online and the coke is on 20 year contract to Cemex for power (petcoke now supplies ~85% Cemex electrical use) & cement plant fuel use. Prior to the new 6 coking expansions the only Pemex coking unit was the 40 MBD Fluid coker at Tula that had 7.0%Sulfur.
The expansions & cokers will help Pemex & Mexico move closer to meeting the shortfall in gasoline & diesel production, substantially increase the amount of heavy oil / Maya crude it can process and reduce the fuel oil production. Unfortunately for the petcoke guys – Mexico is also a major importer of US high sulfur fuel cokes & all this new domestic production (just like in Spain) will also reduce future demand / export markets for US petcoke placement ….until growth in demand makes room for it again. <Cemex made claim in 2007 conference that it would switch from petcoke to coal use in 2008 due to high prices – think all the new domestic petcoke added some comfort for them to make that claim>
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The Expansion en Minatitlan Refinery include a Delayed Coker unit (50000 to 54000 BSPD depend of the feed) and the coke production are going to be between 3000 to 3800 STPD, this unit will be in Operation in 2009
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