Mexico’s Pemex Prioritizes Refining as it Diverts Heavy Oil Away From Gulf

(Reuters) – Mexico’s state oil company Pemex expects to continue diverting barrels of heavy crude away from U.S. Gulf Coast refiners as its new Olmeca refinery ramps up processing, the head of the company’s trading arm PMI, Margarita Perez, said on Tuesday.

Pemex’s decision to prioritize refining over its traditional export markets began around six years ago with Mexico’s previous government, which sought to boost domestic supplies of gasoline and diesel while weaning the country off its longstanding dependence on imported motor fuels, largely from U.S. refiners.

President Claudia Sheinbaum, who took office last October, has continued the policy, arguing like her predecessor it is needed to boost the country’s energy self-sufficiency.

Perez noted that the Olmeca refinery, located near the Gulf coast port of Dos Bocas in Tabasco state, will likely reach its full processing capacity of 340,000 barrels per day (bpd) in the coming year.

The facility is Pemex’s seventh domestic refinery and has suffered multiple delays since its formal inauguration in 2022.

Pemex also fully owns and runs the Deer Park refinery near Houston.

The PMI chief spoke at the CERAWeek energy conference in Houston, where some oil companies operating in the country, including Harbour Energy, showed optimism about fresh energy contracts to be offered soon for partnering with Pemex.

The contracts will bring fresh investment to the country, Gustavo Baquero, the vice president of Harbour, said at the conference.

Reporting by Marianna Parraga; Editing by Chizu Nomiyama Editing by Marguerita Choy

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