Permit approval moves plans forward for first new U.S. refinery in 30 years

The Mexican government will permit construction and operation of a pipeline to deliver crude oil to a proposed new Arizona gasoline refinery that would be the first such project built in the United States in 30 years, the company behind the project said Nov. 22.

Arizona Clean Fuels Yuma said it has reached an understanding with a Mexican ministry, the Secretariat of Energy of Mexico, regarding the pipeline, an offloading facility for tanker ships and a tank farm for temporary storage of oil.

Company spokesman David Traenor called the understanding an important milestone for the project planned for eastern Yuma County in southwestern Arizona, with construction planned to start in late 2006.

Traenor said the offloading facility would be on the western coast of either Sonora or Baja California and that the company is now negotiating with Pemex, Mexico’s state-owned oil company, for crude oil to supply the refinery.

Traenor said the company is well into lining up financing and remaining environmental permits needed for the $3.4 billion project.

The company already has received the required U.S. air quality permits.

—The Associated Press