MMEX Resources plans to build a 50,000-barrel per day (bpd) crude oil refinery in the Permian Basin of West Texas. The $ 450 million project would be the fourth refinery in the Permian, which is currently home to 300,000 bpd of refining capacity.
Houston/USA — The company plans to build its refinery in Pecos County approximately 20 miles northeast of Fort Stockton, near the Sulfur Junction spur of the Texas Pacifico Railroad, which MMEX intends to use in order to export diesel, gasoline, jet fuels, liquefied petroleum gas and crude oil to western Mexico and South America. The company anticipates construction to begin in early 2018, with operations potentially commencing the following year.
"The Permian Basin is the largest continuous oil discovery in America and has experienced exponential gains in daily production volume recently," Jack W. Hanks, MMEX's president and CEO, stated in a press release. "The existing facilities and pipeline networks are largely unequipped to handle this growth and are limiting where products can be transported."
As one of the newest refineries built in the U.S. in four decades, the MMEX facility will boast "state-of-the-art emissions technologies" to minimize environmental impact, the company said, adding that they also expect to deploy closed-in water and air-cooling systems, which it said would enable the refinery to use minimal local water resources.
"We're still in due diligence stages with the plans for the Pecos County refinery and are currently in the process of conducting environmental studies necessary to apply for an air permit with the Texas Commission on Environmental Quality," Hanks said. "That process could take several months to complete, but we're in ongoing conversations with TCEQ as well as with local county officials regarding plans for the project."