Recope Scraps Moín
Expantion, Looking At
Chinese Proposal For A
Refinery
The Refinadora
Costarricense de
Petróleo (Recope) -
state refinery - said it
has scrapped its project
to double the production
of the Moín refinery
because it believes it
will not be profitable.
Recope had planned on
doubling production at
the plant from 20.000 to
40.000 barrels daily.
However, even if the
plant were to be
doubled, it would still
fall short of the 50.000
barrels daily demand.
The Recope decision
comes after it realized
that the cost of the
expansion was going to
be more than its
estimation of us$165
million dollars. The
most viable proposal
received by Recope was
by AESA which came in at
s$425 million dollars.
Given the higher cost
than estimated, Recope
decided to shelve the
project and is now
looking for other
profitable ways to
refine and maintain
lower costs to
consumers, including
building a new refinery.
"Recope will not submit
the country to a project
that is not profitable",
assured William Ulate,
manager of Proyectos y
Comercio Internacional
at Recope.
Ulate said that the
state refinery is now
looking ahead to
building a new refinery
that would have a
capacity of 60.000
barrels daily, that
would cover the national
demand and then some.
The proposal of the
feasibility of building
a new plant will be
undertaken by the
Corporación Nacional
Petrolera de China (CNPC)
under an agreement it
signed with Recope.
There is the possibility
that the CNPC will carry
out the construction of
a new plant, as well as
finance the work.
According to Ulate,
Recope has nothing
binding with the CNPC
and if a better proposal
comes forth it will put
aside the Chinese
proposal.
The feasibility study is
expected to take some
time, and a proposal
could be ready by early
next year. |
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