Reuters reveals Shell to supply crude to Pemex's Texas refinery under long-term pact - Reuters News Agency
Business & FinanceDealsEnergy

Reuters reveals Shell to supply crude to Pemex’s Texas refinery under long-term pact

Reuters reported exclusively that Mexican state oil company Pemex would sign a long-term crude supply contract with Royal Dutch Shell as part of its acquisition of the Deer Park refinery in Texas. Pemex and Shell in May announced the transaction, which is worth almost $600 million and will make the Mexican firm the sole owner of the refinery near Houston. The facility has capacity to process 340,000 barrels per day (bpd). Shell will supply about 200,000 bpd of foreign and U.S. crude to the plant for at least 15 years. A Pemex unit expects to supply up to 115,000 bpd of Mexican crude to the refinery and receive about 230,000 bpd of refined products that could go to Mexico. The transfer secures for Mexico a greater supply of fuel produced by the plant while reducing sales to gasoline retailers in the United States.

Article Tags
Topics of Interest: Business & FinanceDealsEnergy
Type: Reuters Best
Sectors: Business & FinanceCommodities & EnergyUtilities & Other Energy
Regions: South America
Countries: Mexico
Win Types: Exclusivity
Story Types: Exclusive / Scoop
Media Types: Text
Customer Impact: Important Regional Story
FILE PHOTO: The logo of Mexican state oil company Petroleos Mexicanos (Pemex) is pictured at a gas station in Ciudad Juarez, Mexico February 27, 2020. REUTERS/Jose Luis Gonzalez//File Photo
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