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

Share This:


More News Articles

 

  • Related Posts

    Top US Refiners See Profits Soar, Step Up Investor Rewards

    By Nicole Jao Top refiners post combined second-quarter profit of $12.6 billion Capital returns to shareholders hit $6.3 billion in second quarter TD Cowen sees Marathon and Valero each repurchasing…

    BofA to Plow $250 Billion Into Critical Infrastructure Projects

    By Paula Seligson and Katherine Doherty Bank of America Corp. unveiled a $250 billion initiative to invest in critical infrastructure across the US over the next year, joining its peers…

    Have You Seen?

    Tracer World Invites Global Investment For 200 MW Mumbwa Solar PV + 180 MWh BESS Project In Zambia

    • September 5, 2026
    Tracer World Invites Global Investment For 200 MW Mumbwa Solar PV + 180 MWh BESS Project In Zambia

    UAE Raises Clean Energy Target To 35% By 2030–2031

    • September 5, 2026
    UAE Raises Clean Energy Target To 35% By 2030–2031

    South Africa Competition Commission Backs EMIF II Acquisition Of Mainstream Renewable Power

    • September 5, 2026
    South Africa Competition Commission Backs EMIF II Acquisition Of Mainstream Renewable Power

    AAI Invites Bids For INR 14.85 Crore Ground-Mounted Solar Plant At Agartala Airport

    • September 5, 2026
    AAI Invites Bids For INR 14.85 Crore Ground-Mounted Solar Plant At Agartala Airport

    Sunthrix Solar Energy Pvt. Ltd. Honoured as Emerging Solar EPC Company of the Year at Rajasthan Energy Excellence Awards 2026  

    • September 5, 2026
    Sunthrix Solar Energy Pvt. Ltd. Honoured as Emerging Solar EPC Company of the Year at Rajasthan Energy Excellence Awards 2026  

    China Rare Earth Firms Freeze U.S. Exports Weeks Before Xi-Trump Summit

    • September 4, 2026
    China Rare Earth Firms Freeze U.S. Exports Weeks Before Xi-Trump Summit

    Europe Gas Prices Head for Fourth Straight Weekly Gain

    • September 4, 2026
    Europe Gas Prices Head for Fourth Straight Weekly Gain

    Iran Says It’s Found Ways to Dodge U.S. Oil Blockade

    • September 4, 2026
    Iran Says It’s Found Ways to Dodge U.S. Oil Blockade

    India Plans Mandatory Battery Storage at Solar and Wind Projects

    • September 4, 2026
    India Plans Mandatory Battery Storage at Solar and Wind Projects

    UK must bolster food supply chain resilience

    • September 4, 2026
    UK must bolster food supply chain resilience