Fluor Corporation has announced that ICA Fluor, its industrial engineering and construction joint venture with Empresas ICA, S.A.B. de C.V., was authorized by Pemex Transformación Industrial to proceed with the engineering, procurement, and construction (Phase II) of the Madero Clean Diesel project at the Madero Refinery in Tamaulipas, Mexico.

Fluor booked its $500 million share of the contract in the fourth quarter of 2015.

ICA Fluor will provide detailed engineering, procurement, construction, commissioning, and start-up services for two 25,000-barrel-per-day diesel hydrodesulfurization trains and associated facilities. The project also includes installation of new hydrogen, sulfur recovery, and sour water treatment plants, the revamp of the existing diesel hydrodesulfurization unit, and offsites and utilities to integrate the new production facility with the existing refinery. The project is scheduled to be completed in the first quarter of 2018.

The project is part of Pemex’s clean fuels program, its comprehensive development and modernization program, and is designed to increase Mexico’s production of ultra-low sulfur diesel in accordance with applicable environmental standards.

“We are very pleased with the performance of ICA Fluor, and this award by Pemex demonstrates the trust and confidence in our joint venture to successfully execute this very significant clean fuels project at the Madero refinery,” said Peter Oosterveer, Fluor’s COO. “Fluor and ICA Fluor remain fully committed to Pemex and our other clients in the Mexican market.”