Mitsui to work on Pemex refinery: report

TULA, January 17, 2018 – State-owned Pemex will partner with Mitsui to build a USD 2.6-billion coking plant for its Tula refinery, international media reported Tuesday.

According to two anonymous Reuters sources, the Japanese conglomerate was chosen in December and a final arrangement will be publicly announced towards the end of Q1 2018.

“Mitsui was chosen, but the talks are still ongoing to reach a final deal. It is complex,” Reuters quoted one of the sources as saying.

Pemex initially planned to tender the project earlier in 2017, but in October said the process had been delayed due to “the complexity and the investment needed.” According to the NOC, USD 1.24 billion has already been invested in the project. Reuters sources said the chosen partner would be responsible for the remaining project costs.

The 315,000-bpd Tula refinery regularly operates below capacity, averaging only 219,000 bpd in January-November 2017. By adding a coking unit, Pemex plans to boost the facility’s petrol output by as much as 40%, and to produce higher-value refined products. The plant is expected to come on line in 2021.

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