PEMEX Starts Crude Deliveries to Dos Bocas Refinery

PEMEX began sending 16.3Mb/d of crude to the Olmeca refinery in Dos Bocas, Tabasco. This amount is less than 5% of the refinery's total expected capacity and less than 1% of the 1.8MMb/d that PEMEX currently produces. It was expected that by August, Dos Bocas would be receiving 170Mb/d of crude, which would be half of its estimated processing capacity of 340Mb/d.?

Despite refining operations already starting, the various delays and cost overruns that the refinery has faced have led to different perspectives on the most important energy project of this administration. In May, PEMEX CEO, Octavio Romero, projected that Dos Bocas would add 177Mb/d to the total processing capacity of the NOC this year. However, he had previously stated that the refinery would be at full capacity by the end of March, something was not fulfilled. The lack of production and ongoing delays are jeopardizing president López Obrador’s primary objective to reduce Mexico's dependence on gasoline and diesel imports, mainly from the United States.

The situation PEMEX is facing, will be one of the main challenges the next administration will encounter. Credit rating agency Moody's warns that the next government will face financial challenges in maintaining support for PEMEX, dealing with fiscal constraints, and increasing social spending.? According to the analysis, main presidential candidates Sheinbaum and Gálvez agree on the importance of transitioning to renewable energy, but Sheinbaum is likely to continue expanding the refining business, which will lead to greater losses. Gálvez, on the other hand, proposes allowing private sector involvement to steer PEMEX away from unprofitable operations in favor of modern and sustainable energy technologies.?

"Regardless of the election outcome, we anticipate that the next government will face a challenging situation due to fiscal deterioration and the need for support from PEMEX. The financial strain that the state-owned oil company will exert on the next government suggests that it will alter its public debt policy. How it does so will determine the extent to which PEMEX will reduce its liquidity needs, improve its financial position, and decrease its dependence on government support," states Moody’s.?