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Pemex sees ESG challenges

affecting future funding efforts

MEXICO’S national oil company (NOC) addition to public funding so that it has a sus-
Pemex has expressed concern about its ability tainable means of maintaining and improving
to uphold pledges to transition from fossil fuels its infrastructure.
to renewable energy, saying that future efforts “Pemex has to make significant efforts if it
to raise funding may hinge on the ability to intends to access financing,” Gonzalez argued.
respond to criticism from investors concerned “It’s increasingly important to prevent and mit-
about emissions. igate risks associated with ESG – including, of
These concerns, which were spelled out in course, climate change.”
the updated version of Pemex’s business plan The NOC updated its business plan in a bid
for the 2023-2027 period, come as no surprise to accelerate its sustainability efforts while also
considering that the company has long been focusing on oil and gas exploration and pro-
considered a laggard with respect to the global duction, in addition to the pursuit of renewable
transition to renewable energy. The NOC is energy targets. The company has come under
widely considered to have made less progress mounting pressure over the last year to reduce
than its competitors on decreasing carbon its emissions, not just with respect to carbon
dioxide emissions in order to mitigate climate dioxide, but also methane released during the
change. process of oil and gas production. ™
Institutional investors have certainly noticed
the gap between Pemex and its cohorts with
respect to spending on ESG (environmen-
tal, social and governance) programmes, the
updated business plan noted. “Limitations
from ESG financing” could pose a threat to
the company’s bottom line in the future, as will
the “acceleration in energy transition that is
decreasing the market for Pemex’s crude oil and
[petroleum] products,” it said.
Additional weaknesses will include “impor-
tant gaps in reaching net-zero emissions” and
operational challenges, particularly in the area
of natural gas exploration and production, it
added.
Julia Gonzalez, an energy and infrastructure
expert at the Gonzalez Calvillo law firm, believes
that Pemex should seek private investment in Pemex is widely perceived to be spending less on ESG initiatives (File Photo)

AMLO says Olmeca refinery will start

operating at 170,000 bpd in July 2023

MEXICO’S national oil company (NOC) where the oil-processing plant is being built.
Pemex is reportedly on track to see the Olmeca He noted in a Twitter post that the facility was
oil refinery, now under construction near the currently undergoing testing and would begin
port of Dos Bocas in Tabasco State, operate at commercial operations at an initial capacity of
50% of its full design capacity of 340,000 barrels 170,000 bpd on July 1, 2023.
per day (bpd) in the second half of this year. Work is due to be completed “in world-re-
President Andres Manuel Lopez Obra- cord time,” meaning that the refinery will be able
dor made an announcement to that effect on to start operating at its full capacity of 340,000
December 23 after paying a visit to the site bpd as of September 15, 2023, he stated.

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