Five people die in fire outside Pemex’s Olmeca refinery in Mexico

MEXICO CITY, March 17 (Reuters) – Five people died outside Mexico’s Olmeca oil refinery after “oily waters” around the perimeter caught fire, state-run oil firm Pemex said on Tuesday, the latest incident at the flagship project of former President Andres Manuel Lopez Obrador.

One of those who died was a Pemex worker, the company said.

Pemex said it is working with authorities to determine the cause and that operations were unaffected.

“Due to heavy rains that caused oily water to overflow outside the Olmeca refinery, the liquid pooled and subsequently ignited outside the facility’s perimeter fence,” Pemex said in a statement.

Olmeca is in the southern state of Tabasco in the Gulf port of Dos Bocas. It is among Mexico’s largest refineries and began operations in 2024.

The refinery was built to reduce Mexico’s dependence on imported fuel. It was inaugurated in 2022 during the term of President Lopez Obrador, the predecessor and political mentor of current President Claudia Sheinbaum.

The $21 billion project, more than double the original budget, has experienced a series of operating problems including stoppages, and has failed to meet the production targets promised upon inauguration.

In January, the refinery produced 205,000 barrels per day (bpd) of crude oil, 77,520 bpd of gasoline and 78,500 bpd of diesel. Its maximum processing capacity is 340,000 bpd which the Lopez Obrador administration said would mean “energy sovereignty”.

(Reporting by Ana Isabel Martinez; Editing by Natalia Siniawski and Christopher Cushing)