Page 4 - LatAmOil Week 40

LatAmOil COMMENTARY LatAmOil

(Photo: LopezObrador.org.mx)
Presidential priorities

Lopez Obrador has unveiled a new infrastructure investment programme
that signals his continued commitment to Pemex and the public sector

EARLIER this week, Mexican President expansion projects at two refineries owned by
Andres Manuel Lopez Obrador unveiled his Pemex, the national oil company (NOC).
WHAT: government’s new infrastructure investment The larger of the two projects envisions the
The Mexican government programme. completion and installation of a new coking
hopes to attract MXN99bn Speaking during his daily press confer- unit at the Tula refinery, which lies to the north
for five oil and gas ence in Mexico City, Lopez Obrador indicated of Mexico City in Hidalgo State. Pemex began
projects. that the programme encompassed dozens of work on the unit before Lopez Obrador was
projects that were likely to require more than elected president in 2018 but has not yet fin-
WHY: MXN297bn ($13.93bn) worth of investment. ished it.
These projects appear This is equivalent to slightly more than 1% of the The cost of this project is set to reach
to be mostly in line with country’s GDP, according to Treasury Secretary MXN54.7bn ($2.56bn), equivalent to more than
Lopez Obrador’s overall Arturo Herrera, who also attended the briefing. 55% of the total amount needed for oil and gas
approach. About a third of all the money needed for initiatives under the infrastructure investment
infrastructure projects, or MXN99bn ($4.64bn), programme.
WHAT NEXT: is slated to go to the oil and gas industry, where The smaller project, meanwhile, provides for
The president has the government is looking to implement five the rehabilitation of an existing coker at Pemex’s
conceded the need for projects. This essay will provide a very brief Cadereyta refinery, which is near the city of
private investment, but overview of the state’s plans. Monterrey in Nuevo Leon State. This initiative
private companies may
be reluctant to jump on is expected to carry a price tag of MXN15.4bn
board. Crude oil ($722.1mn).
With respect to oil, the presidential admin- Both of these schemes are in line with the
istration is looking to support upgrade and current president’s approach to energy issues.

P4 www. NEWSBASE .com Week 40 08•October•2020