Pemex seeks site for new oil refinery

Petroleos Mexicanos, the state-owned Mexican oil company, may begin construction of a $7-billion refinery by the end of 2010 to reduce imports of gasoline and diesel fuel.

A study has been commissioned to determine the site of the new plant, according to a filing with the U.S. Securities and Exchange Commission.

Mexico City-based Pemex will also begin construction on post-treatment plants for ultra-low-sulfur gasoline in 2009 and diesel by 2010.

Even though it is a leading oil producer, Mexico imports about 40% of the gasoline consumed domestically. In March, President Felipe Calderon asked his energy minister and Pemex’s chief executive to choose a site to build a refinery before he leaves office in 2012.

Pemex hasn’t built a refinery in more than 25 years. It has upgraded only two of its six refineries in a program that started 13 years ago and was supposed to be completed in half the time.

Mexico’s refineries have the capacity to process about 1.3 million barrels of oil a day.