MOSCOW (MRC) -- A USD14 billion investment plan unveiled by the Mexican government focuses energy outlays on the refining business of Petroleos Mexicanos (Pemex), aiming to boost the state oil firm’s ability to process heavy crudes, reported Reuters.
The plan, which comprises some 99 billion pesos (USD4.65 billion) in energy projects, did not appear to include new major oil exploration and production investments, despite Pemex’s declining crude output and private sector lobbying for them.
The top item is a 54.7 billion peso project to complete a partly-built coking plant at Pemex’s Tula refinery in central Mexico. The project was begun by the previous government.
The so-called deep conversion refining project would allow more output of higher-value motor fuels like gasoline and diesel from Pemex’s mostly heavy crude production, while minimizing less valuable fuel oil.
The plan pledges 15.4 billion pesos for upgrades to Pemex’s existing coking plant at its northern Cadereyta refinery.
Another 25.2 billion peso investment is slated for a project to build a natural gas liquefaction plant at the southern port of Salina Cruz, where Pemex’s biggest refinery is.
Two smaller energy projects announced by officials include a Pemex ethane terminal at the Gulf Coast port of Pajaritos, as well as a new fertilizer plant.
The investment plan was announced by President Andres Manuel Lopez Obrador and business leaders on Monday to help to lift Mexico’s ailing economy.
As MRC informed earlier, Pemex is advancing a refinery rehabilitation program that will enable it to process 1.2 million b/d of crude oil by the end of 2020 and evaluating a reconfiguration of its petrochemical facility at Cangrejera, Mexico, into what would be its eighth refinery.
We also remind that in 2016, Pemex shut its steam cracker at its Cangrejera complex for maintenance on February 15. The cracker was idle for about 14 days. The conducted repairs at the cracker were a part of planned maintenance.
Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,496,500 tonnes in the first eight months of 2020, up by 5% year on year. Shipments of all ethylene polymers increased, except for linear low desnity polyethylene (LLDPE). At the same time, PP shipments to the Russian market reached 767,2900 tonnes in the eight months of 2020 (calculated using the formula - production minus exports plus imports - and not counting producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
Pemex, Mexican Petroleum, is a Mexican state-owned petroleum company. Pemex has a total asset worth of USD415.75 billion, and is the world's second largest non-publicly listed company by total market value, and Latin America's second largest enterprise by annual revenue as of 2009. Company produces such polymers, as polyethylene (PE), polypropylene (PP), polystyrene (PS).
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