South Korea-based Samsung Group's plant engineering unit Samsung Engineering has been awarded a $550m contract to provide engineering, procurement, construction and commissioning services for the second phase of the Antonio M. Amor Refinery in Salamanca, Mexico.
Pemex Transformacion Industrial is the newly created fuel processing subsidiary of Mexico’s state-owned petroleum company Petroleos Mexicanos (Pemex).
Under the contract, Samsung Engineering will expand the capacity of the plant by 53,000 barrels of ultra-low sulfur diesel (ULSD).
The upgrade work is planned to be completed by the end of 2018.
The contract scope also includes construction of a new plant in Salamanca, located northwest of Mexico City.
Upon completion by the end of 2018, the new plant will be able to produce 38,000 barrels of ULSD.
The company will also build sour water stripper (SWS) unit, which will have a capacity of 5,000 bpsd as well upgrade three existing hydro desulfurization (HDS) units.
Pemex has awarded the second phase project the completion of the first phase of the project. The contract for the first phase was awarded in 2014.
Samsung Engineering president and CEO Choong Heum Park said: "We have successfully delivered several projects for PEMEX in the past.
"This contract award is not only a result from our unmatched project execution capabilities and proven experience in the Mexican market but also from the mutual trust we built with the client over many years.
"Samsung Engineering hopes to continue strengthening a long-term partnership with Pemex."
The contract has been awarded as part of Pemex’s second phase of the project. The deal follows the completion of the first phase of the project, which was awarded to Samsung in 2014.
Image: Pemex ULSD project officials. Photo: courtesy of Samsung.