Analysis

Pecos refinery project to go ahead

MMEX Resources plans to implement the Pecos refinery project in three 10kbd (0.5Mnta). crude oil distillation units, to be built in three phases. Phase 1, now permitted by the TCEQ, will produce a non-transportation grade diesel primarily for sale in the local market for drilling mud and frac fluids, along with naphtha and residual fuel oil to be sold to other refiners.

The refiner is also are in negotiations to acquire an existing 46kbd (2.3Mnta) refinery in the Louisiana Gulf Coast-Mississippi River area.