I hope my posts are not interpreted as nay-saying. I want to see ULSD / DUBA in Mexico and I am hopeful that Pemex is going to figure this out as far as upgrading their refineries. I think they are trying - they are working on it. But they do have lots of problems, not the least of which is the decline in oil prices which cut their anticipated budget considerably. There are lots of online stories but I cannot find any recent reports as to how far along the upgrades to the refineries might be at this point. Mexico is buying a lot of fuel from the US and that fuel - whether gasoline or diesel - is low sulfur. My Google searches do not turn up any recent progress reports on refinery upgrades. Here are some dated stories with websites for more info that may provide more detailed information.
Mexico Refinery Upgrades to Continue in 2016
http://www.pemexenglishlibrary.com/mexico-refinery-upgrades-to-continue-in-2016/
25 JANUARY 2016
After fits and starts and multiple cancellations of plans, Pemex has issued an investment plan worth some US$23 billion for much needed upgrades to Mexico’s aging oil refineries. The new plan replaces much more ambitious plans that had been released prior to the worst fiscal year in a quarter century for the former Mexican state oil monopoly.
The current proposals are something of a refinement to earlier and more expensive projects, the contracts for some of which had already been granted. Among the most notable was a two-phase upgrade project to the Salamanca Refinery, both parts of which were awarded to South Korean firm Samsung.
The newer projects include a US$5 billion retrofitting of the petroleum refinery in Tula, in the Mexico State which borders Mexico City. This upgrade will increase the plant’s refining capacity to some 340,000 barrels a day.
The Salina Cruz refinery, the third of Mexico’s big-three of refineries, is also part of the revised investment plan. All of the refinery upgrades are intended to decrease sulfur in the gasoline being produced, but they range in complexity in part due to the varying ages of the refineries.
http://ihi-ec.com/75071-2/
IHI E&C Opens New Chapter on Salina Cruz Refinery in Mexico
Posted by neil geary In News
With an important new decision just reached within PEMEX to continue into the EPC (Engineering, Procurement, Construction) phase for environmental upgrades of the Salina Cruz refinery, the IHI E&C/CONIP joint venture is taking another step together and building on a successful five year history.
This joint venture partnership has built a solid relationship as partners while executing the Project Management Contractor (PMC) role to PEMEX for the direct supervision of basic engineering design by the licensors of the PEMEX Ultra-Low Sulfur Diesel (ULSD) program at five Mexican refineries.
Focused on its Ultra-Low Sulfur Diesel program, PEMEX has now made a historical change in in its contracting methodology, and moved from requiring competitive lump sum bidding from its contractors to open book conversion methodology to a lump sum.
IHI E&C communication to PEMEX about its lump sum conversion capabilities has “played a significant role in the change of contracting methodology,” said Senior Vice President – Business Development Hal Bouknight.
Based on the historical track record, the IHI E&C/CONIP joint venture team earlier were selected as the key PMC partner for PEMEX on the Salina Cruz refinery through a third party (A.T. Kearney) evaluation process of more than 25 potential PMC contractors. Working together, IHI E&C brought the open book conversion methodology, and CONIP a highly capable local engineering team and strong track record working for PEMEX to the mix.
Over the next three years, IHI E&C/CONIP PMC and EPC activities on the ULSD project will emanate from a number of locations and engineering design centers, including Monterrey, Mexico; Madrid; Thailand; Houston; and Mexico City, all in support of the Salina Cruz field location.
Industry Trend Analysis - Investment Plan Progress Prompts Downstream Forecast Upgrade - JAN 2015
http://www.oilandgasinsight.com/industry-trend-analysis-investment-plan-progress-prompts-downstream-forecast-upgrade-jan-2015
BMI View: We have upgraded our Mexican refinery capacity and fuel production forecasts based on tangible progress in the downstream element of Pemex's USD 5.5 bn infrastructure spending plan. This programme has draw n significant international interest and supports our upbeat view on the future of Mexico's oil and gas sector.
Recent progress in Mexican national oil company (NOC) Pemex's downstream investment plan has prompted us to increase our crude refining and fuels production forecast. The NOC's historic USD2.8bn refinery spending plan is part of a larger USD5.5bn infrastructure modernisation strategy whereby Pemex is preparing for a broad increase in total production with respect to both upstream and downstream operations.
Factoring in the planned expansion to refining capacity, we now estimate diesel fuel output will grow to 530,000b/d by 2018, representing a 200,000b/d increase from 2014 levels and a 186,000b/d increase from our previous forecast. We forecast continued growth to 562,000b/d by 2023. Furthermore, over the next several years, we believe refinery upgrades will enable increased utilisation rates from 81.1% in 2014 to 92.5% by 2023
ICA Fluor Awarded Miguel Refinery Upgrade Contract in Mexico
http://www.process-worldwide.com/ica-fluor-awarded-miguel-refinery-upgrade-contract-in-mexico-a-513423/
ICA Fluor signed a contract with Pemex Transformacion Industrial to supply detail engineering, procurement and construction (EPC) services for the utilities and offsites that are part of the Tula Refinery upgrade at Hidalgo, Mexico. The total contract value is $1.1 billion.
Saudi Aramco and Pemex Sign MOU
https://www.euro-petrole.com/saudi-aramco-and-pemex-sign-mou-n-i-12529
Pemex, Mexico's state oil company, is engaged in the exploration, production, transportation, refining, storage and sale of hydrocarbons and derivatives. Its products include petrochemicals, natural gas, liquid gas, sulphur, gasoline, kerosene and diesel. Pemex operates 344 production fields, 6,382 production wells, 225 off-shore platforms, 6 refineries, 8 petrochemical complexes, 7,896 km of gas pipeline, 4,548 km of oil pipeline, and 19 LPG distribution terminals.
Pemex advances ULSD project at Minatitlan refinery
http://www.ogj.com/articles/2016/03/pemex-advances-ulsd-project-at-minatitlan-refinery.html
03/21/2016
Pemex Transformacion Industrial (formerly Pemex Refinacion), the processing arm of Mexico’s state-owned Petroleos Mexicanos (Pemex), has let a contract to Tecnicas Reunidas SA, Madrid, for work related to the second phase of the country’s ultralow-sulfur diesel (ULSD) project at the 185,000-b/d Lazaro Cardenas refinery near Minatitlan, Veracruz state.
As part of the Phase 2 contract, Tecnicas Reunidas will provide engineering, procurement, construction, and commissioning of two refining units at the facility, including a 30,000-b/d diesel hydrodesulfurization (HDS) unit and a 150-tonne/day sulfur recovery plant, the service company said.
Tecnicas Reunidas’ scope of work under the contract additionally will include modifications to an existing HDS unit at the refinery, as well as corresponding auxiliary services and integration of associated plants located outside Minatitlan’s battery limits.
Valued at $800 million and awarded on a turnkey basis, the Phase 2 EPCC contract has a duration period of 36 months, Tecnicas Reunidas said.
Mexico's Pemex puts refinery updates on hold in $4.1 bil cuts program
Mexico City (Platts)--17 Feb 2015
http://www.platts.com/latest-news/oil/mexicocity/mexicos-pemex-puts-refinery-updates-on-hold-in-26015118
The $4.1 billion in cuts amounts to 14% of the original Pemex budget for this year. Late last year, the company announced a $20 billion multi-year program that would upgrade three of its six refineries: Tula and Salamanca in central Mexico and Salina Cruz on the southern Pacific Coast.
The upgrades also included a clean-fuels program.
After years of low productivity, and major delays as well as budget overruns in its refineries under the state monopoly, Mexico currently imports about half of its gasoline, mainly from the US.
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