Page 6 - LatAmOil Week 50 2021

LatAmOil MEXICO LatAmOil

Lopez Obrador says Pemex

may see more tax breaks

MEXICO’S President Andres Manuel Lopez recovers from the coronavirus (COVID-19)
Obrador said earlier this week that his govern- pandemic. The country is currently dependent
ment might offer additional tax breaks to the on imports for about 70% of its gasoline con-
national oil company (NOC) Pemex. sumption, the news agency noted.
Speaking during his daily press conference The sources did not say which refineries
on December 13, Lopez Obrador described might handle the extra barrels, but Bloomberg
tax concessions as an effective means of mak- pointed out that the NOC had multiple options
ing more money available to the NOC, which is on this front, as its plants in Mexico have been
the country’s biggest taxpayer. “With Pemex, for operating at less than 50% of their design capac-
example, we are constantly or periodically low- ity for the last months. It also speculated that
ering taxes so they have more funds,” he com- Pemex might direct the extra barrels to the
mented. “And we can lower them more.” Deer Park refinery in Texas once it finalised
The president did not say exactly what kind its planned acquisition of a 50.01% stake from
of tax cuts were under consideration. However, Shell. (The Mexican company already owns the
Bloomberg suggested that the government other 49.99% of the facility and is waiting for US
might make further reductions in the company’s regulators to approve the agreement it struck
profit-sharing taxes. Mexico City cut the rate of with a US-based subsidiary of the multinational
Pemex’s profit-sharing tax from 54% to 40% in earlier this year.)
September of this year, the news agency noted. Bloomberg went on to say that news of the
In any event, Lopez Obrador stressed that diversion of Mexican crude exports might exert
his administration would provide the NOC bullish pressure on Asian crude markets. Sup-
with financial support and protection. “We’re ply conditions are already tight in Asia, which
no longer following neoliberal policies, which currently absorbs about a quarter of Mexico’s oil
treated Pemex as if it were any other company,” exports, and the reductions mentioned by the
he declared. “Now Pemex is a protected com- news agency’s sources would probably affect
pany, supported and backed by the government.” refiners in India and South Korea. ™

Possible crude export cuts
Meanwhile, Pemex may also obtain another
type of support, in the form of a reduction in
crude exports by about 200,000-300,000 barrels
per day (bpd) in 2022.
Sources with knowledge of the matter told
Bloomberg last week that the company wanted
to cut exports so that its refineries could turn out
more petroleum products to supply domestic
demand, which is rising as Mexico’s economy AMLO, shown on Dec. 13 (Photo: LopezObrador.or.mx)

REGIONAL
Cheniere reported to have struck

LNG supply deal with NFE in July

US LNG producer Cheniere Energy reached a Under the sales and purchase agreement
six-year supply deal with an affiliate of New For- (SPA), Cheniere will deliver between 600,000
tress Energy (NFE) in July, a recently released and 1mn tonnes per year (tpy) to NFE North
letter to the US Department of Energy (DoE) Trading from the Corpus Christi LNG terminal
has shown. in Texas on a free-on-board (FOB) basis.

P6 www. NEWSBASE .com Week 50 16•December•2021