Pemex delays refinery construction to yearend

Eric Watkins
Oil Diplomacy Editor

LOS ANGELES, Jan. 20 -- Mexico's Petroleos Mexicanos will delay construction of a refinery until yearend while the state firm studies the best location for the plant.

Pemex Chief Executive Officer Jesus Reyes Heroles said the 300,000 b/d refinery will cost $9-10 billion to build, but he noted that costs could fall due to reduced demand for services and equipment.

Pemex announced the refinery plan in mid-2008, and planned to begin preparing the refinery site before yearend 2008.

The company is eyeing nine possible sites for the proposed facility, including Cadereyta, Campeche, Dos Bocas, La Cangrejera, Lazaro Cardenas, Manzanillo, Salina Cruz, Tula and Tuxpan.

Governors of 15 states have been lobbying Pemex to make the investment in their states. The most recent is Tlaxcala state governor Hector Ortiz, who met with Heroles regarding the proposed new refinery, and presented a feasibility study to site the facility in his state.

Last October, President Felipe Calderon said his government would use 12 billion pesos ($853 million) from the country's stabilization fund for investment in Pemex to begin building a new refinery in 2009, the first in nearly 30 years.

Increased refining capacity is considered urgent, as the country has spent almost $12 billion on petroleum product imports in 2000-07 due to a shortage of refining capacity, Pemex said.

Contact Eric Watkins at hippalus@yahoo.com.

Related Articles

Fire hits PBF Energy’s Delaware refinery

08/21/2015 PBF Energy Inc., Parsippany, NJ, is running its 190,000-b/sd refinery in Delaware City, Del., at reduced rates following a fire that broke out in t...

Fire hits Shell’s integrated processing operations in Singapore

08/21/2015 Royal Dutch Shell PLC has extinguished a fire that occurred at one of the units at the company’s Pulau Bukom manufacturing site on Bukom Island, Si...

API: US petroleum demand up in July

08/21/2015 Total petroleum deliveries, a measure of demand, rose 2.2% from July 2014 to average nearly 19.6 million b/d last month, according to the American ...

Irving Oil plans massive turnaround for New Brunswick refinery

08/20/2015 Irving Oil Ltd. will undertake the largest turnaround in the privately held company’s history beginning next month at its 300,000-b/d St. John refi...

Fire-shuttered Al-Shuaiba refinery to restart soon, KNPC says

08/19/2015 Kuwait National Petroleum Co. (KNPC) plans to restore operations at its 200,000-b/d Al-Shuaiba refinery within the coming days after an Aug. 17 fir...

US House leaders press BP for answers on Whiting refinery outage

08/18/2015 Leaders in the US House of Representatives are demanding answers from BP PLC regarding the early August unplanned and still ongoing shutdown of a m...

LyondellBasell to shed Argentinian petrochemical assets

08/18/2015 LyondellBasell, Houston, has reached an agreement for the sale of its wholly owned subsidiary Petroken Petroquimica Ensenada SA (Petroken), which o...

ORPIC completes installation of Oman’s first hydrocracker

08/17/2015 Oman Oil Refineries & Petroleum Industries Co. (ORPIC) has completed installation of a hydrocracker as part of the company’s long-planned Sohar...
White Papers

UAS Integration for Infrastructure: More than Just Flying

Oil and gas companies recognize the benefits that the use of drones or unmanned aerial systems (UAS) c...

Solutions to Financial Distress Resulting from a Weak Oil and Gas Price Environment

The oil and gas industry is in the midst of a prolonged worldwide downturn in commodity prices. While ...
Sponsored by

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by
Available Webcasts


Operating a Sustainable Oil & Gas Supply Chain in North America

When Wed, Oct 7, 2015

Short lead times and unpredictable conditions in the Oil & Gas industry can create costly challenges in supply chains. By implementing a LEAN culture of continuous improvement you can eliminate waste, increase productivity and gain end-to-end visibility leading to a sustainable and well-oiled supply chain.

Please join us for this webcast sponsored by Ryder System, Inc.

register:WEBCAST


The Resilient Oilfield in the Internet of Things World

When Tue, Sep 22, 2015

As we hear about the hype surrounding the Internet of Things, the oil and gas industry is questioning what is different than what is already being done. What is new?  Using sensors and connecting devices is nothing new to our mode of business and in many ways the industry exemplifies many principles of an industrial internet of things. How does the Internet of Things impact the oil and gas industry?

Prolific instrumentation and automation digitized the industry and has changed the approach to business models calling for a systems led approach.  Resilient Systems have the ability to adapt to changing circumstances while maintaining their central purpose.  A resilient system, such as Maximo, allows an asset intensive organization to leverage connected devices by merging real-time asset information with other critical asset information and using that information to create a more agile organization.  

Join this webcast, sponsored by IBM, to learn how about Internet of Things capabilities and resilient systems are impacting the landscape of the oil and gas industry.

register:WEBCAST



On Demand

Taking the Headache out of Fuel License and Exemption Certificates: How to Ensure Compliance

Tue, Aug 25, 2015

This webinar, brought to you by Avalara, will detail the challenges of tax document management, as well as recommend solutions for fuel suppliers. You will learn:

-    Why it’s critical to track business partner licenses and exemption documents
-    The four key business challenges of ensuring tax compliance through document management
-    Best practice business processes to minimize exposure to tax errors

register:WEBCAST


Driving Growth and Efficiency with Deep Insights into Operational Data

Wed, Aug 19, 2015

Capitalizing on today’s momentum in Oil & Gas requires operational excellence based on a clear view of what your business data is telling you. Which is why nearly half* of oil and gas companies have deployed SAP HANA or have it on their roadmap.

Join SAP and Red Hat to learn more about using data to drive process improvements and identify new opportunities with the SAP HANA platform running on Red Hat Enterprise Linux. This webinar will also show how your choice of infrastructure impacts the performance of core business applications and your ability to achieve data-driven insights quickly and reliably.

*48% use SAP, http://go.sap.com/solution/industry/oil-gas.html

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected