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Sulphur 418 May-Jun 2025

3 May 2025

Samsung ends contract with PEMEX

MEXICO

Samsung ends contract with PEMEX

Samsung E&A has announced the termination of its $1.6 billion contract with the Mexican state-owned oil company PEMEX for a sulphur recovery facility project. Samsung says that the contract, originally signed nearly a decade ago, has faced significant delays and suspensions due to budget cuts imposed by the client. It concerns a hydrodesulphurisation (HDS) facility aimed at removing sulphur components from diesel fuel at the Salamanca refinery in Guanajuato state, central Mexico. In a statement, Samsung E&A confirmed that they have reached an amicable agreement regarding the contract termination, stating, “We have been fully compensated for the expenses incurred during the project suspension, and since this project was not included in our sales or operating profit forecasts for this year, there will be no financial loss due to the contract termination.”

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Desulphurisation unit installed at Luján refinery

YPF says that its modernisation of the Luján de Cuyo refinery has taken a step forward with the installation of a hydrodesulphurisation reactor, designed to remove sulphur compounds from diesel fuel by means of a catalytic process using hydrogen. The installation forms part of the refinery’s New Fuel Specifications (NEC) project, intended to produce of fuels with a lower environmental impact. The new reactor was built in Mendoza by IMPSA. With a length of 38 meters and a weight of 456 tons, it was moved from Godoy Cruz to the YPF plant in a logistic operation that involved Vialidad Nacional, Mendoza Police and local authorities. It will now be integrated into the HDS II unit, designed to reduce sulphur content in diesel to 10 parts per million, in line with current environmental requirements. The NEC plan includes new process units, such as H2 II and SE33, the adaptation of existing facilities and the improvement of auxiliary services. The project, already 85% complete, will allow all the diesel oil produced in Luján de Cuyo to comply with the highest emission requirements.