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Pemex to invest $4.6bn in Tula refinery

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

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

Pemex plans to invest more than $20bn 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 300,000b/d from 180,000b/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 $1.3bn coker plant at the refinery. It will provide engineering, procurement and construction services. 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.

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