ICA Fluor secures $1.1bn refinery upgrade contract with Pemex in Mexico

ICA Fluor, an industrial engineering and construction joint venture between Fluor and Empresas has secured a $1.1bn refinery upgrade contract with Pemex Transformacion Industrial.

Under the terms of the contract, ICA Fluor will supply engineering, procurement and construction (EPC) services for the utilities as well as off-sites that are part of the Tula Refinery upgrade in the central Mexican state of Hidalgo.

ICA Fluor director general Juan Carlos Santos Fernandez said: "This project is a major step to increase Pemex’s competitiveness.

"We are proud to be in the position to support them in the development of the strategic projects required by the country, providing Mexican engineering and construction resources."

The refinery’s processing capacity is expected to increase from the existing 315,000 barrels per day to 340,000 barrels per day, after completion of the upgrade.

Mechanical completion of the project is scheduled for the second quarter of 2018.

The latest contract follows Pemex’s $95m contract to ICA Fluor in September 2013 to develop the first phase of the Miguel Hidalgo refinery’s $3.5bn project to reconfigure the refinery.

Located about 150km from Mexico City, the refinery was built in March 1976 and became operational in 1977.

Tula refinery supplies motor fuels to various Mexican states including Hidalgo, Morelos, Queretaro, Celaya and Guerrero.

Recently, Fluor completed the construction of Shell’s Quest carbon capture and storage (CCS) project near Fort Saskatchewan, Alberta, Canada.

The company used its third Gen Modular Execution approach to design and construct the facility.