Fort Stockton-based MMEX Resources Corporation completed a purchase of 126 acres in Pecos County, Texas today. The land will be the construction site for Phase I of the company’s 10,000 barrel per day crude distillation unit.
MMEX joins Raven Petroleum in planning to build the first large-scale oil refineries in the United States in over 40 years. The Woodlands-based Raven Petroleum purchased 832 acres in south Texas and announced their plan to build a refinery near Laredo last December.
Both companies plan on exporting a large portion of their refined products to Mexico, taking advantage of the country’s deregulation of the energy market and the surplus of Texas light crude oil that comes from shale production.
MMEX plans to immediately file for all the necessary permits to begin construction on the Phase I crude distillation unit of the project, which will have a total footprint of 15 acres. Once all the funding and permits are obtained, the project will take roughly 15 months to finish.
In addition to the initial 126-acre purchase, MMEX plans to purchase the adjacent 350 acres. The additional purchase will house the Phase II 50,000 barrel per day refinery. The refinery will have a footprint of 250 acres. MMEX plans to make the second land purchase by January 2018.
“The closing of our Phase I land site is a major milestone for the Pecos County refinery project and a catalyst for significant milestones to come, including the filing of environmental permits to authorize construction on our smaller-scale initial refinery. We’re eager to begin construction on this exciting project and start bringing new jobs to the region,” said Jack W. Hanks, the president and chief executive officer of MMEX Resources Corp.
MMEX picked a strategic site for the location of the refineries since the land the company purchased has the Texas Pacifico-South Orient Railroad running through it. The acreage sits 20 miles northeast of Fort Stockton, which is a west-Texas city located roughly 250 miles east of El Paso on Interstate 10.
MMEX plans to use the existing railway, roads, and pipeline infrastructure for bringing in crude oil and shipping out the refined products. The Texas Pacifico-South Orient Railroad connects to the Dallas-Fort Worth area, the Texas Gulf Coast, and Mexico via Presidio, TX. This will allow MMEX to easily ship the refined products both domestically and internationally.
MMEX Resources Corporation formed in 2010 and shares common management with Maple Resources Corporation, which started in 1986. MMEX concentrates on acquiring and developing oil & gas, refining, power generation, and natural gas transmission projects. The company’s area of focus is Texas and Latin America.
If both MMEX Resources and Raven Petroleum do build the planned refineries, then Texas will benefit with added jobs and energy revenue. The cities of Fort Stockton and Laredo could really use the economic growth the refineries would bring to their respective areas.
Article written by HEI contributor Raymond Arrasmith.