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tothe

01/15/18 3:38 PM

#83074 RE: CEOs #83072

I agree. The.Coastal.Refineries are old, prone to leaks and have a high degree maintenance just to keep the running.

* No one hurt in explosion at Marathon Petroleum's Texas City refinery Oct 31, 2017
https://seekingalpha.com/news/3306136-one-hurt-explosion-marathon-petroleums-texas-city-refinery

40 years of design modifications are going into MMEX Phase 1 and 2.
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jmjjw

01/15/18 5:38 PM

#83084 RE: CEOs #83072

Once again, more false and misleading B.S. hyping MMEX.

In fact, the VFuel's rudimentary topping unit appears to have been directly lifted from a popular design tool template, and is largely unmodified.

The rudimentary process unit lacks critical capability, including a desalter, side-stripping units, and implements the least efficient straight-run diesel recovery possible - a reboiler. The unit will not run in balance, and can only handle a very narrow feedstock range, centered around the mythical "Diamond Rogers Blue" - the assay for which was supplied by MMEX - it does not match what actually comes out of the ground here in the Permian.

An undergraduate student in his or her sophomore or junior year who would submit a design like this in a process engineering class would receive a failing grade. MMEX lacks the competence to understand how flawed the design used in its Phase I proposal is - they allowed it to be submitted to TCEQ, and it got permitted! This dooms MMEX to operating a unit guaranteed not to run in balance, reliably, or over the range of real-world feedstocks available in the region.

The final insult to injury for the unsophisticated - MMEX's Phase I unit would be unable to produce any directly marketable product. There are no direct markets for ATB, AGO, or LGO in the region - all of MMEX's potential product would have to be shipped to downstream refiners for additional processing.

All three of the existing regionals have the ability to process WTI-spec crude, as well as sour crude, and lighter condensates. The process capability represented in MMEX's rudimentary Phase I system is a subset of the total range of process capability for the existing regionals.

And a new state of the art CDU. The competition doesn’t have it to handle this oil like mmex

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CEOs

01/15/18 5:41 PM

#83085 RE: CEOs #83072

Exactly. Being able to be tuned to handle the Permian crude is critical. All the latest control and processing methodology as well as material in a new modular CDU. Go mmex