Pemex contracts Samsung to upgrade Salamanca refinery to low-sulfur diesel

Samsung Engineering and Pemex have officially signed a $552-million contract for the second phase of a ULSD (ultra-low-sulfur diesel) project at the Antonio M. Amor refinery in Salamanca, Guanajuato State, Mexico.

Emilio Lozoya Austin, the general director of Pemex, and Samsung Engineering's managing director in Mexico celebrated the contract award in an official ceremony at the Pemex offices in Mexico City, Mexico.

The project site is located 250 kilometers northwest of the capital Mexico City, and Samsung Engineering will be responsible for the engineering, procurement, construction and commissioning. 

The refinery plant scope includes a new HDS (hydro desulfurization) unit with a capacity of 38,000 bpd, a SWS (sour water stripper) unit with a capacity of 5,000 bpd and the revamping of three existing HDS units, with a total capacity of 53,000 bpd. 

The entire Salamanca ULSD project is expected to be completed in the third quarter of 2018.

Samsung Engineering had signed the first phase of the two-phased project in 2014. This Phase II award is the consequence of completing Phase I to the client’s full satisfaction, which was executed on an OBCE (open book cost estimation) basis, including detail engineering and procurement of long-lead items.

“We have successfully delivered several projects for Pemex in the past," said Choong Heum Park, president and CEO of Samsung Engineering. "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 Salamanca ULSD project is the fourth refinery contract awarded to Samsung Engineering by Pemex, having already completed projects at the Tula refinery, the Minatitlan refinery and a naphtha HDS (hydro desulfurization) project at the same Salamanca refinery.