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LatAmOil                                      COMMENTARY                                            LatAmOil











































                                                                           Not a working refinery yet (Screenshot: Twitter/@lopezobrador)
       Olmeca makes its debut







       Pemex makes a show of marking the official launch of Mexico’s newest and largest

       refining project, which is still running far behind schedule and far over budget



                         PEMEX is already a linchpin of the Mexican   high-ranking government officials in attend-
                         economy. It could hardly be otherwise, as it is   ance, it celebrated the official opening of the
       WHAT:             both the largest enterprise in the country, as well   facility with a ceremony orchestrated to mark
       Pemex marked the official   as the biggest taxpayer.   the first trial runs of crude through the 340,000
       opening of the Olmeca   However, President Andres Manuel Lopez   barrel per day (bpd) refinery’s processing units.
       refinery on July 1.  Obrador has bigger plans. He has made it clear   The ceremony was supposed to be a trium-
                         that he would like to give the national oil com-  phant moment for Pemex. However, it started
       WHY:              pany (NOC) an even greater edge over its pri-  late, and it did not include a demonstration of
       The plant remains unfin-  vate-sector competitors and play an even more   the plant’s ability to produce gasoline as the
       ished and will not start   prominent role in the economy. Additionally, he   company and government had previously
       producing gasoline until   has indicated that he would prefer to see Mex-  planned. (Indeed, Pemex is now saying it will
       next year at the earliest.  ico stop exporting its crude and keep it at home   wait until early 2023 to start regular commercial
                         instead, directing it to Pemex’s refineries for   production of gasoline so that it can wrap up its
       WHAT NEXT:        processing it into petroleum products to satisfy   pilot production programme.)
       The president’s lofty am-  domestic demand.              Despite these shortcomings, the Mexican
       bitions for the project will
       be difficult to realise.  Lopez Obrador and his administration have,   president, who has been the biggest champion
                         of course, used policy to work toward these   of the project, described Olmeca as a success-
                         goals. But they have also sponsored a number of   ful venture that would help the country achieve
                         concrete initiatives. One of the largest of these   self-sufficiency in energy. “This is a moment of
                         is the Olmeca refinery project in Tabasco State.  big change, a major turn, from selling crude oil
                           Pemex brought the Olmeca plant, which   to transforming the raw material, producing the
                         was originally known as Dos Bocas, on stream   fuel ourselves and selling it on the internal mar-
                         on July 1. With Lopez Obrador and other   ket,” he declared at the launch ceremony.



       P4                                       www. NEWSBASE .com                           Week 26   30•June•2022
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