MOSCOW (MRC) -- Mexico's state-run Petroleos Mexicanos would likely reduce oil sales to Europe and Asia before the United States, its main market for oil exports, after its Dos Bocas refinery begins operations, a Valero Energy Corp VLO.N executive said on Thursday.
Pemex in December said its crude exports will fall to 435,000 bpd this year from 1.019 million bpd in 2021 and it plans to cease all crude exports after its 300,000-barrel-per-day Dos Bocas refinery in the southeastern state of Tabasco begins processing crude next year.
Pemex was not immediately available to respond to the Valero executive's comments.
Analysts expect that the exports decline - which has not yet been included in the budget Mexico's congress approved for 2022 - would primarily affect customers that buy Mexican crude on the spot market, including many in Asia.
"It looks like their (Pemex) goals are pretty aggressive," said Gary Simmons, Valero's chief commercial officer, during the firm's fourth quarter earnings call on Thursday.
The Texas-based refining company, which is among the US top importers of heavy crude, expects to continue its business relationship with Pemex, he added.
Pemex also plans to reshuffle fuel imports after buying Shell's 50%-stake in the Deer Park refinery in Texas, which will give it access to up to 230,000 bpd of US fuels.
As MRC wrote before, Mexico carried out the transaction as agreed: USD596 MM for the refinery's assets - equivalent to Shell's 50% stake in the JV's debt - as well as the liquidation of the USD596 MM that made up Pemex's stake in the refinery.
Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.
According to MR''s ScanPlast report, Russia's estimated PE consumption totalled 2,265,290 tonnes in the first eleven months of 2021, up by 14% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,363,850 tonnes in January-November, 2021, up by 25% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding PP random copolymers decreased significantly.
Petroleos Mexicanos (Pemex) is a Mexican state-owned oil and gas and petrochemical company. Since the nationalization of the Mexican oil industry in 1938, Pemex has remained a state-owned company and, by law, has exclusive rights to explore and produce oil in the country. Almost 60% of the company's revenues go to the state budget. Petrochemical products include, but are not limited to, polyethylene, polyvinyl chloride.
MRC