Sheinbaum Details Energy, PEMEX Milestones in Second Address

President Claudia Sheinbaum Pardo outlined a policy framework aimed at strengthening state energy dominance while defining clear boundaries for private investment in Mexico’s energy sector. The strategy combines a US$20 billion reduction in PEMEX’s debt load with a 32,000MW power capacity expansion, backed by MX$141 billion (US$8.3 billion) in gas infrastructure investments and US$4 billion in Banobras-structured financing for renewable energy tenders. By maintaining a 54% public and 46% private generation split and constraining unconventional gas extraction, the regulatory model establishes structured mechanisms for private capital while preserving state oversight across energy markets.

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President Claudia Sheinbaum delivered her two-year progress report, detailing the administration's economic and infrastructure outcomes with a focus on state energy entities, oil and gas production, and power generation targets.

During the address, Sheinbaum highlighted recent constitutional amendments that restored PEMEX and CFE as public enterprises. The administration reported a reduction of US$20 billion in PEMEX’s debt load. Current operational metrics for the state oil company stand at 1.77MMb/d of crude oil production, nearly 5bcf/d day of natural gas output, and more than 1.5MMb/d processed across the National Refining System (SRN).

The president defended the operational contribution of the Olmeca Refinery in Dos Bocas, Tabasco, stating that the facility has cushioned domestic fuel supply against international price volatility. "To all those who criticized the construction of the Olmeca Refinery, today it is proven that, thanks to it, we have been able to withstand the increase in fuel prices and the shortages affecting the vast majority of countries around the world,” President Sheinbaum said.

Processing infrastructure developments also include two coking plants under construction in Tula, Hidalgo and Salina Cruz, Oaxaca to expand low-sulfur gasoline and diesel output, with the Tula facility scheduled for completion in late 2026 and Salina Cruz in 1H27. Furthermore, PEMEX fertilizer production reached 1,185t in 2026, marking a 38% increase compared to 2024 levels, alongside ongoing rehabilitation work at the Escolin, Cosoleacaque, Morelos, and Cangrejera petrochemical complexes.

To expand natural gas transport, the government initiated the National Pipeline Plan, backed by a MX$141 billion (US$8.3 billion) investment projected through 2030 to supply the southeastern region, 13 new combined-cycle power plants, and designated Well-Being Development Poles. 

According to data reported by MBN, Minister of Energy Luz Elena González detailed that out of the total gas infrastructure allocation, CFE will direct MX$53.8 billion toward nine specialized pipelines to fuel the 13 new combined-cycle plants. Concurrently, CENAGAS will manage MX$87.1 billion to execute three new gas ducts and 41 overhaul projects across its 21,149km national pipeline network, addressing critical capacity bottlenecks in the Yucatan Peninsula and northern industrial corridors. 

Regarding unconventional gas resources, President Sheinbaum said that the Government’s expert committee ruled out exploitation in the Tampico-Misantla Basin due to environmental constraints, while feasibility studies continue regarding deep brackish water availability in the Burgos Basin.

In the power sector, the administration outlined plans to add 32,000MW of capacity to the National Interconnected System by 2030, raising the share of renewable energy from 24% to 38%. Over the past two years, six combined-cycle plants contributing 3,000MW were completed, and eight hydroelectric stations were modernized. Under the mixed-investment scheme established in February 2026, which maintains a 54% public and 46% private generation framework, the government approved 38 private sector projects representing 8,025MW of generation capacity, more than 2,500MW of energy storage, and US$10.6 billion in investment. CFE has also initiated a MX$244 billion investment program focused on upgrading transmission and distribution networks.

To support this generation rollout, Mexico’s Ministry of Finance (SHCP) and development bank Banobras structured a US$4 billion financing package to back private sector participation in the upcoming renewable tenders. According to Jorge Alberto Mendoza, Director General, Banobras, the institution is aggregating capital allocations from commercial banks, domestic pension funds, and international institutional investors to fund 36 solar-centric projects recently awarded across 18 corporations, as reported by MBN. The development bank also capitalized its development pipeline by securing MX$20 billion through a local debt market issuance managed by BBVA Mexico, ensuring liquidity for large-scale energy infrastructure.