Mexico: oil line to Arizona refinery

Arizona Clean Fuels Yuma said recently that it has reached an understanding with the Mexican Secretariat of Energy covering the pipeline, an offloading facility for tankers, and a tank farm for temporary storage of oil. David Traenor, a spokesman for Scottsdale-based Arizona Clean Fuels, called the understanding an important milestone for the project planned in southwestern Arizona, with construction planned to start in late 2006 and be completed in 2010. He said the offloading facility would be located on the western coast of either Sonora or Baja California, and that the company is now negotiating with Pemex, Mexico’s state-owned oil company, for crude oil to supply the refinery.

Though crude from countries other than Mexico also could be used, “we anticipate them being a major supplier,” Traenor said of Pemex. The refinery in eastern Yuma County would be Arizona’s first. Most gasoline now used in Arizona is carried by pipelines from California and Texas. The facility could produce approximately 50,000brl/d of motor fuels, including approximately 85,000brl/d of gasoline, 35,000brl/d of diesel fuel, and 30,000brl/d of jet fuel. Traenor said the company is now considering financing proposals for the $3.4-billion project and is working on obtaining the remaining environmental permits needed for the pipeline, pumping stations, and other facilities. Arizona Clean Fuels is partnering with Newport Beach, California-based WesPac Pipelines to build and operate the offloading facility, tank farm, and pipeline.

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