PEMEX Awards $622 Million of EPC Contracts to ICA Fluor for Two Low-Sulfur Gasoline Projects

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Researched by Industrial Info Resources (Sugar Land, Texas)--Mexico's national oil and gas company Petróleos Mexicanos (PEMEX) (Mexico City, Mexico) has awarded industrial construction company ICA Fluor (Mexico City) $622 million of engineering, procurement and construction (EPC) contracts for two low-sulfur gasoline projects in the country. ICA Fluor is a joint venture company formed by Fluor Corporation (NYSE:FLR) (Irving, Texas) and Empresas ICA SA (NYSE:ICA) (ICA) (Mexico City).

The contract is scheduled to be fully implemented by mid-2013. Under the terms of the contract, ICA Fluor will undertake EPC services, testing and start-up of the units. The scope of work includes the installation of the amine regeneration units, the catalytic gasoline desulfurization plants, offsite equipment and utilities. ICA Fluor will also manage the integration of the new units with PEMEX's existing Antonio Dovali Jaime Refinery at Salina Cruz in Oaxaca and the General Lazaro Cardenas del Rio Refinery at Minatitlan in Veracruz. Both refineries include a 25,000-barrel-per-day (BBL/d) catalytic distillation train, amine regeneration units, flares and ancillary facilities.

The new units are being planned as part of PEMEX's clean-fuels program, which includes a comprehensive modernization and development of the company's refineries, so that Mexico's production of ultra-low-sulfur gasoline can be increased. According to Mexico's new environmental regulations, PEMEX must ensure that the sulfur content of the company's products is decreased. According to Director General Juan Carlos Santos of ICA Fluor, the installed capacity of the refineries is being kept intact during the implementation of the EPC contract.

The 162,000-BBL/d Minatitlan refinery supplies refined petroleum products to the markets along the Gulf of Mexico. PEMEX is currently implementing a separate upgrade project to increase production capacity and ensure the production of cleaner fuels. The Salina Cruz refinery has a production capacity of 330,000 BBL/d. Pemex has six operating refineries with a combined capacity of more than 1.5 million BBL/d, and the company is taking measures to ensure that products from all refineries meet Mexico's new environmental regulations.

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