50,000 bpd, $450 million refinery slated for Permian

By North American Shale magazine staff | March 31, 2017

West Texas could be home to the newest oil refinery in the U.S. MMEX Resources Corp., has proposed a 50,000 barrel per day processing facility near Fort Stockton, Texas. For $450 million, MMEX intends to build on a 250-acre plus site near the Sulfur Junction spur of the Texas Pacifico Railroad. The site will allow MMEX to export diesel, gasoline, jet fuel, liquefied natural gas and crude to western Mexico and South America.

“The existing facilities and pipeline networks are largely unequipped to handle this growth [happening in the Permian] and are limiting where products can be transported,” said Jack Hanks, president and CEO of MMEX. Construction could begin starting early next year. Roughly 400 workers will be needed to build the facility and it could take 18 months.

The team has already amassed 30 years of experience building and managing multi-million dollars processing, pipelines, power plants, refinery and oil and gas operations in both the U.S. and Peru.

Talking with Producers
Western Refining Logistics is also working to capitalize on the growing production rates in the Permian. The company’s board has set aside $27 million for 2017 gathering line construction projects in the region. Jeff Stevens, president and CEO, said WRL is already in advanced talks with producers targeting the Delaware Basin. “We continue to believe that particular growth opportunities exist, particularly in the Permian. As producers announce more production growth, we’ll have the opportunity to build more.