Mexico set to start construction of new oil refinery

The Mexican Government is all set to start construction of Mex$150bn ($7.7bn) oil refinery in the Gulf Coast state of Tabasco.

The move comes as Mexican President Andres Manuel Lopez Obrador calls for the country to become self-sufficient in oil and gas production, reported Bloomberg.

Obrador was quoted by Bloomberg as saying at an event in Paraiso, Tabasco: “The nation depends too much on buying foreign gasoline.”

According to Energy Minister Rocio Nahle, the facility will comprise 17 processing plants and 93 storage tanks. Other project infrastructure will include access to highways, a rail line and docking for ships.

In March, Mexico invited international firms to participate in a competitive tender for the construction of the oil refinery.

To be owned by Mexican oil company Pemex, the proposed refinery is aimed at increasing domestic production of gasoline and diesel. It will also minimise the country’s dependence on fuel imports.

The refinery has already received all necessary government approvals.

Once the construction concludes, the facility will become Pemex’s seventh domestic refinery.

Obrador confirmed that the refinery will be inaugurated in three years and that it will be built by the government instead of a third party.

Last month, Obrador handed the project to Pemex after the cancellation of a tender with the bidders, who failed to meet his three-year timeline and stick to the $8bn budget allocated for the project.

The bidding process for the six phases of the refinery is expected to begin at the end of this month.