UPDATE 2-Mexico refinery repairs to take 2 wks-Pemex source

Wed Sep 8, 2010 11:56am EDT

Related Topics

 * Repair to gas oil hydrotreater seen simple -source
 * No major damage to process units -source'
 * U.S. traders skeptical on forecast return date
  (Adds byline, trader comment, links)
 By Robert Campbell
 MEXICO CITY, Sept 8 (Reuters) - Mexico's state oil monopoly
Pemex should be able to quickly repair the hydrotreater at its
275,000 barrels-per-day Cadereyta refinery that was damaged in
an explosion on Tuesday, a company source said on Wednesday.
 The repairs should be complete within 14 days, the source
said, who spoke on condition of anonymity because he was not
authorized to discuss the issue with the media.
 "It was an unfortunate accident because a worker was killed
but the damage was not that great," the source said.
 Initial surveys of the refinery show no significant damage
to any process units, the source added.
 The accident was caused by a leak in a compressor in the
hydrogen recirculation segment of the coker gas oil
hydrotreater, causing the explosion and fire that killed one
worker and injured 10.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
  Take a Look:                           [ID:nN07216960]
  Factbox on Pemex refining operations:  [ID:nN07234898]
  Graphic of refinery's location:
  link.reuters.com/dew89n
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
  The 40,000 bpd hydrotreater was immediately shut down
following the accident along with the refinery's 54,000 bpd
coker. Pemex [PEMX.UL] said it would cut crude oil runs at the
refinery by 15,000 bpd to approximately 200,000 bpd while
repairs were being made.
 The remaining 30 process units at the refinery are running
normally.
 Some U.S. oil traders expressed skepticism that Pemex would
be able to repair the unit as quickly as forecast.
 "It is hard to believe they can be back in two weeks. To
come back on a high pressure hydrotreater in two weeks after a
fire looks aggressive."
 The explosion at Cadereyta, Mexico's third largest refinery
by distillation capacity and its most sophisticated facility,
pushed up oil product prices on Tuesday on concerns it would
force Pemex to increase fuel imports.
 Oil product traders said it might be difficult to tell if
Pemex was increasing imports given its already significant
presence in the market.
 Analysts said the incident would likely only influence
prices in the very short term due to high fuel stocks in the
United States.
 (Additional reporting by Joshua Schneyer in New York; Editing
by Marguerita Choy)


FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.