Permian Basin to get another refinery?
MMEX Resources Corp. on Tuesday announced that it plans to build a 50,000-barrel per day (bpd) crude oil refinery in the Permian Basin of West Texas. The $450 million project will create approximately 400 peak construction jobs and an estimated 100 jobs during operations, according to the company.Another benefit to a modern refinery is that it can handle the light crude from the shale wells. Mexico has had trouble getting refined products to the part of Mexico to be served by this refinery because of transportation problems and theft by cartels. Mexico is Texas's largest trading partner.
"The Permian Basin is the largest continuous oil discovery in America and has experienced exponential gains in daily production volume recently," Jack W. Hanks, MMEX's president and CEO, stated in a press release. "The existing facilities and pipeline networks are largely unequipped to handle this growth and are limiting where products can be transported."
The MMEX project would be the fourth refinery in the Permian, which is currently home to 300,000 bpd of refining capacity, Hanks told Rigzone. Existing Permian refineries operate in Big Spring and El Paso in Texas and in Artesia, N.M.
MMEX plans to build its refinery on a 250-acre site in Pecos County approximately 20 miles northeast of Fort Stockton. The site, which will be surrounded by 250 additional acres of buffer property, sits near the Sulfur Junction spur of the Texas Pacifico Railroad. The company plans to use the existing railway access to export diesel, gasoline, jet fuels, liquefied petroleum gas and crude oil to western Mexico and South America.
"By building a state-of-the-art refinery along the region's existing railway infrastructure, we hope to bring a local and export market for crude oil and refined products which will add substantial job and economic growth to West Texas," stated Hanks.