Despite President Andres Manuel Lopez Obrador’s claims that Mexico’s new Olmeca refinery would be ready to produce commercially viable motor fuels by the end of his term, sources close to the project say it will not be operational until at least October or November.
The 340,000-barrel-per-day refinery, located in Tabasco and inaugurated in July 2022, has been plagued by delays and cost overruns. The project’s price tag has more than doubled to $16.8 billion, with some sources estimating that it will not be completed until after the next president takes office on October 1.
Pemex CEO Octavio Romero recently claimed that the refinery would be operating at full capacity within a month, but insiders say this is unrealistic. Two engineers familiar with the project described the current state of the refinery as “fine” in terms of its technical and operational aspects but noted that it still requires significant work to bring all its components online.
The engineers said that linking individual parts of the refinery together will be a complex and time-consuming process, requiring months of trial and error. They also pointed out that public statements by Pemex officials have been overly optimistic, failing to consider more technical criteria necessary for successful refinery operations.
To date, the refinery has only processed a single cargo of high-sulfur diesel, which was not produced from crude oil as planned. The project still requires work on key components such as the fluid catalytic cracking plant, hydrodesulfurization plant, and coker plant.
Pemex officials have declined to comment on the status of the refinery, and the president’s office has also failed to respond to requests for information.
Source: Reuters
