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Pemex to receive an extra MXN $75 billion

President Andrés Manuel López Obrador announced that the tender for the construction of the new refinery will begin in March 2019

Pemex to receive an extra MXN $75 billion
The Minatitlán refinery - Photo: File Photo/EL UNIVERSAL
English 10/12/2018 13:59 Alberto Morales Mexico City Actualizada 14:00
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While presenting his National Refinery Plan, President Andrés Manuel López Obrador announced that the tender for the construction of the new refinery will begin in March 2019.

Before Governors from oil-producing states and his energy cabinet, López Obrador said that in the 2019 budget, Pemex will be allocated an additional MXN $75,000 million to increase the gas and fuel production.

The location where the new refinery will be built, the President claimed that it is urgent to stop the crisis in the industry and begin with the revival of oil, on the contrary, next year, the production could reach up to 1,500,000 barrels per day, 300,000 less than the barrels produced this year.

He explained that the plan is that in three years, Mexico will be self-sufficient in the oil production: “It won't be easy because of the need for resources, but we're getting there. I'm promised that in three years we would be self-sufficient in gas so that fuel prices are lowered.”

He emphasized that the aim is to produce 2,400,000 barrels per day in 2024, to supply the internal market.

He said that in the face of the bureaucracy created in the industry with regulatory agencies, the current Pemex leader, Octavio Romero Oropeza, will be in charge of increasing the oil
production: the Ministry of Energy, Rocío Nahle, will be in charge of rehabilitating the six refineries and the construction of a new one, while the head of the CFE, Manuel Bartlett, will look to improve the electric service.

He explained that they are working on “contracts that make the oil extraction easier” and claimed that the additional public investment won't generate debt and the oil contingency fund won't be used.

Therefore, he called for Mexican businesspeople to rise to the occasion: “We will trust businesspeople during this project.”

He explained that Dos Bocas is the best place for a refinery because over 1 million oil barrels arrive at this port every day, out of everything that is produced in Campeche.

“Why is the refinery going to be built here? Because this oil won't be sent abroad, it's going to stay here and it will be turned into fuel. This is the best place.”

National plan

Rocío Nahle pointed out that Mexico imports 80% of fuel, meanwhile, the national refinery system is working at a 38% capacity.

Therefore, the plain includes rehabilitating the six refineries, a maintenance strategy at the processing plants, in their facilities and equipment, as well as acquiring new equipment, and using technology.

She explained that during the first year, the Minatitlán, Salamanca, Tula, Cadereyta, Madero, and Salina Cruz refineries will be rehabilitated to increase its production.

She detailed that the second part of the strategy is the construction of a new refinery in Dos Bocas and that its aim is to contribute to the energetic self-sufficiency, maximize the economic and social benefits, and spark off the development in the south.

A cloudy panorama.

Romero Oropeza claimed that despite the millions invested in the refineries, there is a systematic decrease in fuel production. He said that the government will invest more but instead of increasing, they decrease the production: “No more projects that only benefit small groups, no more privatization.”

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