Fluor to build $1 billion refinery in Mexico

Student Alva Gonzalez practices at a pipe welding school operated by Fluor in Houston. (Eric Kayne/For the Chronicle)
(Eric Kayne/For the Chronicle)

Irving-based Fluor Corp. has been contracted to rebuild much of a major Mexican refinery in a $1 billion expansion project, the company said Monday.

The national oil company of Mexico, Pemex, authorized the project with ICA Fluor, which is Fluor’s joint venture with Mexico City-based Emprasas ICA energy construction company. Fluor’s share is for $500 million.

The Madero Clean Diesel project at the Madero Refinery in Tamaulipas, Mexico is part of the nation’s effort to modernize and expand its refineries, in addition to making them more environmentally friendly.

“We are very pleased with the performance of ICA Fluor, and this award by Pemex demonstrates the trust and confidence in our joint venture to successfully execute this very significant clean fuels project at the Madero refinery,” Fluor Chief Operating Office Peter Oosterveer said in a prepared statement. “Fluor and ICA Fluor remain fully committed to Pemex and our other clients in the Mexican market.”

The project is expected to finish in early 2018. ICA Fluor is providing the engineering and construction work for two, 25,000-barrel-per-day diesel-producing trains. The project also involves revamping the existing diesel unit, while building more water treatment and hydrogen and sulfur recovery capabilities.