Pemex reported refining data for December. Fuel production continues to fall due to the company’s multiple problems in its refineries. Pemex has had to increase gasoline imports because of this.
Pemex’s refining stood at 798mbd last December. This represents a 30.35% decrease compared to the same month of 2015, according to Pemex data.
The figure was 977mbd for 2016 on average. This is 12% lower than 2015, when the company reported a refining production of 1,114mbd.
Many companies and investors are interested in doing business in the Mexican hydrocarbons sector but there are also many barriers. Alejandro Esparza Pérez, President of the Energy Regulatory Commission (CRE), referred to failed negotiations with Russian executives.
Pemex Gas and Basic Petrochemicals (PGPB) admitted, through documents delivered to Cenagas, that 40%of its 7,884 pipeline kilometers do not have rights of way.
An article by Sergio Meana for El Financiero, says that the “Contract of Infrastructure Transfer by Natural Gas Duct”shows that some equipment, facilities and materials, (physical infrastructure), are not legaleither.
Armelia Reyes, analyst at Signum Research, said that withthe Brazilian courts suspending the sale of Petrobras subsidiaries, CompanhiaPetroquimica de Pernambuco (Suape) and CompanhiaIntegradaTextil de Pernambuco (Citepe) to Alpek, this company will be unable to increaseits PTA production (by 33%) and PET (by 25%).
Gasoline market has started the year with a lot of excitement. The rise in prices caused much discontent among Mexicans leading to the ’gasolinazo’: a series of protests some of them violent. One of the reasons perhaps is that the country has high levels of consumption.