Permian refinery developer lines up another product contract

By Luke Geiver | July 01, 2019

When a proposed West Texas oil refinery begins operating, the development company behind it, MMEX Resources Corp., will have buyers for all of its product. MMEX announced this week that It has signed contracts with a energy and trading company for its naptha production. The deal is the third by MMEX and will mean all of its products are already spoken for.

Jack Hanks, president & CEO of MMEX Resources Corp., said, "We have now signed the agreement to sell our planned naphtha production to a SuperMajor international energy and trading company for delivery by rail to the Texas Gulf refinery and petrochemical markets. This completes 100 percent of our refined product sales package with gold standard companies and all three off-take agreements provide the market for our project expansion in the Permian Basin,” adding that, “Again, it underscores the opportunity we offer to our area oil and gas producers with other take-away capacity and, quite importantly, these agreements have allowed us to initiate negotiations for MMEX plans to build and own crude oil, IMO 2020 marine fuel and naphtha storage and terminal facilities in the Texas Gulf Coast."   

MMEX plans to build a crude oil refinery complex in the Permian Basin in two phases, with Phase 1 being a 10,000 BPD Crude Distillation Unit which is expected to produce diesel, naphtha and residual fuel oil, and Phase 2 being a full-scale crude oil refinery with capacity of up to 100,000 BPD, projected to produce a full slate of refined products. Completion of the Phase 1 distillation unit is contingent upon obtaining the necessary financing for the project.