Pemex’s Olmeca Refinery to Commence Crude Processing in July

SEATTLE (Oil Monster): The Olmeca oil refinery in Tabasco, southeast Mexico, owned by state-owned Pemex, will commence processing of crude oil in July this year, said the Mexican energy minister Rocio Hahle. The refinery will contribute significantly to the country’s ongoing efforts to make it self-sufficient in gasoline and diesel.

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It must be noted that the refinery is still under construction. The commissioning of the refinery, originally scheduled for early-2022, has been delayed due to environmental and labor disputes related to costs and timing of the project. The official inauguration of the refinery was held last July.

Earlier in December 2022, the company had announced that the refinery would reach 50% crude processing capacity by July this year.

Speaking to reporters after a meeting with the country’s President, Nahle remarked that things are going really well. The refinery would eventually have a processing capacity of 340,000 barrels a day, thus helping Pemex to boost its local refining capacity and ending the country’s dependence on imports, especially from the U.S. refiners. The cost of the flagship project was initially estimated at around $8 billion, but is now expected to double, Nahle added.

The Olmeca oil refinery would be Pemex’s eighth oil refinery.