In a huge blow to the US refinery industry, Mexico’s President Andres Manuel Lopez Obrador has announced plans to build the country’s largest oil refinery that would have the ability to produce 400,000 barrels of gasoline per day.
The $8 billion project could begin soon, which would see it complete within three years. Although Obrador was quoted as saying “400,000 bpd of gasoline”, it remains unclear whether he was referring to crude processing or its gasoline production capacity.
Mexico has a total processing capacity of 1.6 million bpd of crude but is currently working at just 40% capacity due to accident caused outages and issues with operations.
Rocio Nahle, an advisor to Obrador and the person expected to become the next energy minister, said: “In a three-year period, at the latest, we need to try to consume our own fuels and not depend on foreign gasoline.”
If this came to fruition, it would could have a dire impact on US refiners, which export the majority of their production to Mexico.