By David Alire Garcia
MEXICO CITY, Sept 23 Mexico's state oil monopoly
Pemex expects to add 40,000 barrels per day (bpd) of capacity by
2018 at its No.2 refinery, under a $3.5 billion expansion
planned in tandem with construction firm ICA Fluor.
The first phase of the Tula refinery expansion project is
now underway and includes basic engineering and other site
preparations, a Pemex official told Reuters on Monday.
The expansion project awarded to ICA Fluor, a joint venture
between Mexican construction company ICA and U.S.
engineering firm Fluor Corp, will boost the refinery's
distillates production by more than a quarter from current
levels when completed, Pemex said in a statement on Sunday.
The project is separate from a new $10 billion refinery also
planned for near the existing 325,000 bpd installation at Tula,
which lies 51 miles (82 km) north of Mexico City.
"We're going to produce higher-value products (with the
expansion project), including more gasoline, diesel and jet
fuel," the Pemex official said, speaking on condition of
anonymity in accordance with company policy.
The first phase of the expansion project is expected to wrap
up in the second quarter of 2015, at which point construction
will begin. The overall project is expected to be completed by
the second quarter of 2018.
Last week, ICA Fluor won a contract valued at about $110
million to build a gas compression system at Mexico's Gulf coast
port of Dos Bocas.
In July, ICA Chief Executive Alonso Quintana said the
company will still take part in an expected windfall of up to
$70 billion annually in new Mexican government infrastructure