Page 4 - LatAmOil Week 27 2022

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.

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