What the refinery bought by AMLO in Texas looks like

This Monday, the president Andrés Manuel López Obrador announced that Pemex (Petróleos Mexicanos) has acquired the refinery Houston Deer Park, Texas, owned by Shell. As a result of this operation, the parastatal company became the creditor of 100% of the shares, for which the president stressed that by 2023, the country will be self-sufficient in gasoline and diesel, without the need to increase the price of fuel.

“I am pleased, pleased to inform you that Pemex has purchased the shares of the Deer Park refinery in Houston from the Shell company. 50% of the shares were bought because the remaining 50% already belonged to Pemex, and in this way we already have a new refinery. This Houston refinery has the capacity to process 340,000 barrels per day.

We are going to produce gasoline, diesel and it is the same as the new Dos Bocas refinery, which we are building, which is also will have the capacity to refine 340 thousand barrels of fuel per day“, A detailed the person in charge in a video posted on his social networks.

As the chairman pointed out, Pemex already owned half of the shares in the refinery. The the transaction was finalized in 1993 and partnered with Shell to make the necessary investments to process Maya crude.

Its construction began in 1929 and was extended on different occasions, the authorization of petrochemical plants of it began in 1940.

Located at 20 miles from downtown Huston, Texas, Deer Park has significant advantages in transportation, for example in the delivery and receipt of supplies. On top of that, it is a refinery with high safety standards.

According to Pemex, the plant “was characterized by a good performance and use above 80% in recent years. It has a crude processing capacity of 340,000 barrels per day (Mbpd). Its factories allow heavy and light crude to be processed without generating fuel oil ”.

On top of that, its gasoline output is 110,000 barrels per day, 90,000 diesel, 25,000 jet fuel and other products in smaller quantities. In addition, the agreement includes close collaboration with Shell’s petrochemical complex to capture synergies and economies of scale. 1,500 Shell employees and 1,200 contract partners from various subcontractors work at the Deer Park facility.

The sale of the refinery was agreed for an amount of $ 596 million, which is an amount paid in cash. With the acquisition of this plant, Mexico could produce more than 1.3 million barrels per day, a figure that will be enough to cover the country’s demand for fuels.

In sum, with the actions described, #PEMEX would reach a production of one million 362 thousand barrels per day to meet the total Mexican demand for gasoline, diesel, jet fuel and other petroleum products.

The purchase of Deer Park is part of the energy policy of the current federal government. With this agreement, López Obrador assured that, of the six refineries received, his administration will leave eight factories empowered and modernized. Among these, one corresponds to the purchase announced on Monday and another to works at Dos Bocas, Tabasco.

Basically, we have received six refineries in poor condition and are modernizing them, the Tula coking plant is being restarted to increase the refining capacity of this plant and two other refineries. We’re getting six refineries and we’re going to deliver eight refineries, so we’re going to stop buying fuels and gasoline from overseas. We will be self-sufficient in 2023

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