Pemex to invest $4.6 bn in Tula refinery refit

Dec 04, 2014 12:00 AM

Mexico's Pemex will spend US$4.6 bn on refitting its Tula refinery to meet the country's growing fuel demand, which is the state oil firm's most economical option.

In addition to the upgrade, a new storage and distribution terminal will be built at Tula, at a cost of US$1.2bn.

Pemex plans to invest more than US$20 bn in refinery projects, including reconfiguration of the Tula, Salamanca and Salina Cruz refineries as well as ultra-low-sulfur diesel and gasoline plants.

The Tula refit will allow gasoline and diesel production to be increased 65%, to 300,000 b/d from 180,000 b/d, and grow revenues by augmenting the conversion of refined products to 80% from 61%.

ICA Fluor, the JV between Mexico's ICA and US-based Fluor Corp., will build a US$1.3bn coker plant at the refinery. It will provide engineering, procurement and construction services.

"This project is a major step in the modernization of Mexico's oil processing facilities," ICA Fluor director general Juan Carlos Santos said.

The refinery will reopen in 1Q18, according to energy minister Pedro Joaquín Coldwell.

Mexico's fuel oil production will be reduced 10% as a result of the refit, and which is more pollutant and costly than gasoline and diesel, according to Pemex Refinación director Miguel Tame.

The refinery will produce 173,000 b/d of ultra-low-sulfur gasoline, 104,000 b/d of diesel and 21,000 b/d of kerosene, increasing national supply by 100,000 b/d, he said.

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