Renaissance Oil Corp. is the first company after 78 years to compete with state -owned Pemex in hydrocarbons production and commercialization in Mexico.
Pemex’s gas monopoly is over, since last January 1, when private companies started to import propane (LPG). This has been one of the first Energy Reform actions carried out in the country. Pemex has been the most harmed by this measure. For private initiatives, 2016 has been a year of great opportunities, due to the opening of the LGP market.
The “3 de 3” law, recently approved in Mexico, has already generated some concerns, especially to Pemex. The State-Company is currently seeking partnerships with private companies abroad.
A report in El financiero mentions that operations could stop at Salina Cruz refinery in Oaxaca because of blockages in the city. If so, there would be a shortage of gasoline, diesel and jet fuel.
Due to the continuous blockades of roads, trucks have to stop at the entrances and exits of the Antonio Dovalí Jaime refinery in Salina Cruz.
After a week in Mexico City and another week at the Global Petroleum Show in Calgary, Mexico’s ‘belle of the ball’ status is clear. But the government’s strong desire to see increased production through foreign investment does not mean social, or indeed environmental, conditions will be any easier.