MMEX Resources Corp, which in March of this year unveiled plans to build a 50,000-barrel per day (bpd) refinery in Pecos County, Texas, on Nov. 17 broke ground on the facility’s 10,000-bpd crude distillation unit (CDU). Moreover, the company has raised the capacity of its planned refinery – to be built on a 250-acre site northeast of Fort Stockton – to 100,000 bpd. The Permian Basin’s three existing refineries can process 300,000 bpd of crude oil, and MMEX plans to start the permitting process for its refinery early next year.
MMEX’s project will be one additional outlet for growing Permian crude oil production. In just the past week, companies such as Enterprise Products Partners L.P. and Phillips 66 and Enbridgehave announced projects to add crude pipeline takeaway capacity from the region.
“By increasing the refinery’s capacity to 100,000 bpd, we are able to double the output of the refinery for only one-third of the increase in CAPEX,” Jack W. Hanks, MMEX’s president and CEO, told Rigzone late last week. Read More…