Page 8 - LatAmOil Week 09 2021

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Nevertheless, they praised the company for were improving as a result of government
its performance, saying that MXP254.4bn efforts to reduce its tax burden and support oil
($12.14bn) in currency-related gains had helped production.
balance the losses incurred as a result of the “We are in co-ordination with the Ministry of
coronavirus (COVID-19) pandemic and low Finance in order to schedule additional support
crude oil prices. for the amortisations of the year,” he said dur-
Alberto Velazquez, Pemex’s CFO, spoke ing the conference call. “We are not expecting
similarly, saying that the NOC had faced “the to go to markets for refinancing, since the needs
worst crisis in its history” in 2020. He also of amortisation for 2021 will be covered by this
asserted, though, that the company’s finances capital injection from the government.” ™

Cenagas resumes gas deliveries

to Braskem Idesa’s Etileno XXI

CENAGAS, the state-owned operator of Mex- reveal that it had also signed a memorandum
ico’s natural gas pipeline system, has resumed of understanding (MoU) with another Pemex
deliveries of natural gas to Braskem Idesa (BI), covering potential amendments to BI’s ethane
the Brazilian-Mexican joint venture that owns supply contract. BI’s existing ethane supply deal
the Nanchital petrochemical complex in Vera- with the NOC will remain valid for the time
cruz State. being, it added.
BI confirmed the resumption of gas deliveries Octavio Romero, the CEO of Pemex, offered
in a securities filing dated March 1, explaining further details on ethane deliveries on March 3,
that Cenagas had restarted gas shipments after saying that the parties had signed various doc-
the parties had signed a new service contract. uments in late February. Speaking to report-
Cenagas stopped sending gas to Etileno XXI, a ers during Mexican President Andres Manuel
unit within the Nanchital complex that produces Lopez Obrador’s daily press conference, he
ethylene and polyethylene, last December. It did stated that his company would only be required
so amidst a protracted dispute between BI and to continue shipments until 2024.
the national oil company (NOC) Pemex over The disputes with Pemex and Cenagas are
the terms of a 20-year ethane supply agreement. intertwined because BI needs gas in order to
“With the signature of these documents by maintain temperatures within the proper range
BI, BI has started to receive, starting now, natural for deliveries of ethane, the main feedstock
gas delivery, which had been unilaterally cut off,” used at Etileno XXI. They also have a political
the securities filing said. element, in that President Lopez Obrador is
As of press time, the joint venture had not working to give state-owned energy companies
divulged the terms of its new contract beyond every possible advantage and has complained in
saying it could not predict the results of further the past that BI’s ethane supply contract was not
negotiations about gas supplies. However, it did favourable enough to Pemex. ™

NP is slated to exit the retail fuel sector (Photo: NP)

P8 www. NEWSBASE .com Week 09 04•March•2021