Fueling fusion

Sara Kleinecke, McElroy, USA, explains how the company’s pipe fusion machinery was utilised as part of a large refinery construction project in Mexico.

Figure 1. Dos Bocas Refinery, in Tabasco, Mexico.

For more than 20 years, Sevilla Fusión S.A. de C.V. in Mexico has trusted McElroy to provide pipe fusion machines to its customers who are using thermoplastic pipe in a variety of industries, including oil and gas and mining. It’s a partnership with deep roots and over the past several months, Sevilla Fusión has been hard at work in Tabasco, Southeast Mexico, fusing pipe at the Dos Bocas oil refinery. Not only are workers from the company on site, they are also providing the fusion machines for the work being carried out by Samsung Ingenieria Manzanillo, S.A. de C.V., a subsidiary of Samsung Engineering, and two other companies. “Having this many machines on one project all at once is a big deal. The scope of the Dos Bocas refinery project is one of the largest we’ve been a part of in Mexico”, says McElroy International

Sales Manager Juan Quintero. The objective of this project is to make Mexico less reliant on other countries for its commodities.

According to José Herrera Juárez, Commerical Director of Sevilla

Fusión, “The construction of the Dos Bocas refinery has a multiplier economic objective for the region and the country, since through the increase of production of gasoline and diesel, Mexico seeks to reduce the import of these products.” According to the US Energy

Information Administration (EIA), Mexico imports around 77% of its gasoline consumption, and of this amount almost 90% comes from the US.

Declining oil production in Mexico Mexico has six existing oil refineries, all operated by Petróleos Mexicanos (Pemex). The output from those refineries has steadily decreased over the years, from approximately 75% in 2013 to 40% in 2018. In 2013, Mexico’s Congress approved legislation for

energy reform that was intended to re-open the market to foreign investment, reversing a ban back in 1938 that removed private investors’ participation in the country’s energy sector. Despite these efforts, the decline in output continued; it has been attributed to underinvestment and poor infrastructure, which has ultimately led to Mexico’s dependency on imports.

With regard to crude oil inputs to Mexico’s petroleum refineries, there has also been a steady decline from 2010 to 2018; falling to nearly 600 000 bpd, which is a 50% drop from 2013 levels. This reduction has required Mexico to rely heavily on US oil. The reason for the reduction centres around government restrictions, and increased safety concerns surrounding drug activity. This situation has also reduced the number of new companies coming in to further develop Mexico’s shale oil and gas resources.

Supply shortages continue to be a reality in Mexico and resources are projected to become more limited as demand is predicted to grow by 2% annually through 2028. Factors contributing to these predictions include economic growth and an increase in middle class households investing in cars as their incomes rise. In 2019, the average gasoline consumption reached nearly 844 million bpd, and that consumption could increase to 1.1 billion bpd by 2028.

What sparked the Dos Boca’s oil refinery construction? In December 2018, President of Mexico, Andrés Manuel López Obrador, announced the National Refining Plan. The plan’s intention is to increase fuel production, improve refining processes and renew oil production facilities with new technology. The ultimate goal of this plan is to bring energy independence to Mexico.

The National Refining Plan called for rehabilitation of the six existing Petróleos Mexicanos (Pemex) operated refineries and creation of the Dos Bocas refinery to help reduce Mexico’s dependency on fuel imports. Dos Bocas, the seventh refinery, was designed to process 340 000 bpd of heavy crude oil. Construction on the Dos Boca’s oil refinery was slated to begin in 2019 and Pemex was named the owner and operator of the refinery. The initial estimate was US$8 billion dollars with a projected completion date of 2022.

McElroy machines called to action All associated work on the Dos Bocas refinery was divided into six packages. Package 1 involved the construction of the distillation and coking plant facilities. Refining begins with distilling, where the heated oil turns into vapour and feeds into a distillation unit where it rises and cools, and separates into various liquid based on weight. Package 2 is the various desulphurisation units and a naphtha reformer. Reforming increases the amount of gasoline produced from crude oil. Package 3 is the fluid catalytic cracking (FCC) unit, which transforms heavy oil into lighter fluids. Package 4 includes the gas recovery and treatment plant. Package 5 includes building storage facilities and Package 6 involves refinery integration services.

José with Sevilla Fusión says McElroy machines arrived on the job site in August 2019 to begin work on Package 1. Work began on Packages 2 and 3 in March 2021. The McElroy fleet on the job site represents a cross-section of rolling and tracked machines, from the smallest machine which fuses 4 in. pipe to the largest which fuses 36 in. pipe. Workers from Sevilla Fusión are involved in this project because they send an operator from their company to a job site with each machine rental. Samsung Ingenieria Manzanillo, S.A. de C.V. was awarded work on Packages 2 and 3 and they are

Figure 2. Sevilla Fusión S.A. de C.V. provided 13 McElroy fusion machines for Dos Bocas Refinery project.

Figure 3. Those working on Dos Bocas site encounter a variety of elements and various levels of terrain while fusing HDPE pipe.

Figure 4. Nearly 22 miles of HDPE pipe is being installed at the Dos Bocas Refinery.

using McElroy machines provided by Sevilla Fusión. This is Samsung Engineering’s sixth Petróleos Mexicanos (Pemex) project to work on.

According to S&P Global Platts, the construction of the new refinery will create a new 35 km pipeline that will connect Dos Bocas with the existing Minatitlan refinery. Along the nearly 22 mile stretch of HDPE being installed at the new refinery, the job calls for a variety of pipe diameter sizes. With numerous McElroy machines on the site, the pipe fusion is happening simultaneously in different parts of the plant.

José says the entire fleet is increasing productivity and efficiency on the refinery job site, especially the TracStar® 500 and DataLogger®. “The durability combined with the strength to fuse large pipe allows the crew to handle the long stretches of pipe fusion more efficiently. Not to mention the DataLogger® has offered a great advantage.”

In Mexico it is not mandatory to log each joint fusion; however, José always recommends using McElroy’s DataLogger®. In fact, on the Dos Bocas project, it has been requested that the contractors attach the quality records of each fusion joint performed on site. Having these records is an added measure to ensure the HDPE pipe has been fused correctly and adheres to the standard.

The HDPE advantage Sevilla Fusión learned that Pemex was looking for reliable, safe machines that could withstand the demands of fusing thick, large diameter HDPE pipe, with the capability to record the fusion joints. The wall thickness of the pipe being used on the Dos Bocas refinery site is considered to be the thickest pipe in the market. Many of the machines available in Mexico are not capable of fusing such thick walls. McElroy machines are well known as the strongest machines, capable of fusing the thickest pipe wall and pulling greater lengths of pipe.

José says HDPE pipe is also being used for the oil refinery project because it provides a reliable fire network system to aid in fire suppression.

According to Jim Johnston, McElroy’s Vice President & Chief Technology Officer, HDPE pipe has numerous uses within oil refineries. It is commonly used for chemical waste piping, cooling lines, wastewater and firewater lines. The leak free and nonreactive properties of HDPE are the biggest reason people choose HDPE. “Whether it is absolute certainty that the fire suppression system will work when it is needed or the prevention of any environmental spill of materials, HDPE gives the refinery owner confidence.”

Fueling the economy Due to the scope of the project, Samsung Ingenieria Manzanillo, S.A. de C.V. is one of several contractors fusing pipe on the Dos Bocas job site. José with Sevilla Fusión says this project has generated a total of 34 000 direct and indirect jobs for the people and companies of Mexico. Since work began on the new refinery back in 2019, there has been an increase in the project cost and the estimated date to begin operations for Dos Bocas has been pushed back one year to 2023.

Industry experts say Dos Bocas is designed to process heavy crude oil, however, this will still leave a deficit in Mexico’s light crude supply; imports will still need to occur if the country doesn’t increase its light crude reserves.

Looking to the future As Mexico continues to navigate its reliance on imports, one thing that’s certain is the country’s population is on the rise. According

Figure 5. McElroy TracStar® 500 on-site at Dos Bocas Refinery.

Figure 6. Contractors from Samsung Ingenieria Manzanillo, S.A. de C.V. oversee HDPE pipe fusion process at Dos Bocas Refinery site.

Figure 7. Section of Dos Bocas Refinery construction shows crews working simultaneously in different areas of the site.

Figure 8. Samsung Ingenieria Manzanillo, S.A. de C.V. awarded contract to work on Packages 2 and 3 for Dos Bocas Refinery construction. to the US Census Bureau’s most recent data, Mexico’s population as of July 2021 was 130.2 million, and it’s projected to increase to 159.5 million by 2060.

Time will tell what the future holds for Mexico’s oil and gas industry. The projected benefits of the Dos Bocas refinery will not be seen until it officially goes online; however, the construction of the Dos Bocas refinery is putting Mexico on a path toward its desire to strive to be self-sufficient with its resources.

Bibliography

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