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Mexico Approves Pipeline to US Refinery

The Mexican government has approved a plan by an Arizona company to build a crude oil pipeline to link Western Mexico to a new refinery in the United States.

Officials with the Arizona Clean Fuels Yuma company announced an agreement with Mexico's Secretariat of Energy Tuesday, saying it is a major step toward building the first new US oil refinery in nearly 30 years.

The company says the pipeline would link the refinery with an oil facility on Mexico's west coast. The plan is to import predominantly Mexican oil, but the pipeline could also be used for oil from other nations.

Company officials say construction on the refinery could begin next year. Once completed, the facility could produce 150,000 barrels per day of diesel fuel, jet fuel and gasoline.

Some information for this report provided by AP and Reuters.