CERAWEEK - Mexico's Pemex prioritises refining while diverting heavy oil from the Gulf

Margarita Perez of PMI, Mexico's company that handles trading, said Tuesday that Pemex, Mexico's state-owned oil company, expects to divert barrels of heavy crude from U.S. Gulf Coast refining companies as it ramps up its Olmeca refinery.

Pemex began prioritizing refining in favor of its traditional export markets around six years ago, when the previous Mexican government sought to increase domestic supplies, especially diesel, while weaning Mexico off its dependence on motor fuels imported from U.S. refinedrs.

Claudia Sheinbaum has continued this policy since taking office in October last year, and argues, like her predecessor, that it is necessary to increase the energy independence of the country.

Perez stated that the Olmeca Refinery, located near Dos Bocas, a Gulf Coast port in Tabasco State, is likely to reach its processing capacity of 340,000 barrels a day (bpd), in the next year.

This is Pemex’s seventh refinery in the country and it has suffered

multiple delays

Since its formal opening in 2022.

Pemex owns and operates the Deer Park Refinery in Houston.

The PMI director spoke at the CERAWeek conference in Houston where some oil companies in the country including Harbour Energy showed optimism regarding new energy contracts that will be offered in the near future for partnering with Pemex.

At the conference, Gustavo Baquero said that the contracts would bring new investment to the country. (Reporting and editing by Marianna Pararaga, Editing and Marguerita Choy).

(source: Reuters)