MOSCOW (MRC) -- Mexican state oil company Pemex on Thursday took control of the Deer Park refinery in Texas, after concluding the purchase of Royal Dutch Shell's half of that plant, reported Reuters with reference to two people familiar with the matter.
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 in Houston. The facility has a capacity to process 340,000 bpd.
"The formal event will take place at around noon on Thursday in Texas," one of the sources said.
Pemex Chief Executive Officer Octavio Romero is on site for the handover, the sources said.
The Mexican company did not immediately respond to a request for comment on the handover, which Reuters reported last week.
After mentioning Pemex's purchase of Deer Park, Mexican President Andres Manuel Lopez Obrador told a news conference on Thursday that he would on Friday announce some "very good news" on energy matters, without providing details.
The sources said the Mexican side carried out the transaction as agreed: USD596 MM for the refinery's assets - equivalent to Shell's 50% stake in the joint venture's debt - as well as the liquidation of the USD596 MM that made up Pemex's stake in the refinery.
As MRC informed previously, Royal Dutch Shell plc. said in November that its petrochemical complex of several billion dollars in Western Pennsylvania is about 70% complete and in the process to enter service in the early 2020s. The plant's costs are estimated to be USD6-USD10 billion, where ethane will be transformed into plastic feedstock. The facility is equipped to produce 1.5 million metric tons per year (mmty) of ethylene and 1.6 mmty of polyethylene (PE), two important constituents of plastics.
Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,265,290 tonnes in the first eleven months of 2021, up by 14% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,363,850 tonnes in January-November, 2021, up by 25% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding PP random copolymers decreased significantly.
Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.