Dos Bocas Starts Production; Sheinbaum Reassures Investors

President Andrés Manuel López Obrador and president-elect Claudia Sheinbaum officially inaugurated the start of gasoline and diesel production at the Dos Bocas refinery. By Aug. 21, the facility is expected to process 340Mb/d. Sheinbaum plans on continuing building MORENA’s energy strategy aimed at fuel self-sufficiency while advancing the energy transition.

“It is a pride to see how Mexican engineers and workers have achieved this feat so that oil is processed rationally and not sold abroad, strengthening energy sovereignty and, with it, national sovereignty,” Sheinbaum stated. 

Sheinbaum criticized previous governments for “using the country's energy resources irresponsibly and neglecting refining goals.” She emphasized that her administration would continue modernizing existing refineries and reducing energy imports, building on the current government's efforts. The incoming president also pledged to support PEMEX and CFE to keep fuel prices stable. 

“This helps because, in real terms, energy prices will not increase during our government. Besides strengthening PEMEX and CFE, we also have a long-term plan to boost renewable energy production while always defending national sovereignty,” Sheinbaum affirmed.

López Obrador took the opportunity to reflect on the history and achievements of his administration as he prepares to leave office. He highlighted that the Olmeca refinery would operate at 50% capacity in the coming weeks. 

PEMEX Director Octavio Romero noted that production at the Olmeca refinery began last July, with 1.1MMb sold in Veracruz, Puebla, Tlaxcala, Chiapas, Tabasco, and areas near Mexico City. In a few weeks, he assured, gasoline and diesel production would increase. “We aim to produce 87.5Mb/d of ultra-low sulfur gasoline and 65Mb/d of ultra-low sulfur diesel. Starting Aug. 21, 340Mb/d will be processed, equivalent to 175Mb/d of gasoline and 130Mb/d of ultra-low sulfur diesel,” he added.

Sheinbaum Reassures Investors

Despite clear intentions to strengthen PEMEX and CFE, Mexico has become one of the most attractive countries for investment in renewable energy, partly due to the "Sheinbaum effect," according to EY Latin America. The country climbed to 33rd place in EY's 2024 Renewable Energy Country Attractiveness Index (RECAI), up two spots from the previous year. The rise is attributed to the academic background and plans of Mexico's incoming president, Claudia Sheinbaum, to promote renewable energies, which have sparked increased interest among foreign investors. The report noted that Mexico is aligning with regional trends after a period of instability in the renewable energy sector.

The new administration, led by Sheinbaum, has committed to investing over US$13 billion in solar, wind, hydroelectric, and geothermal projects during her term, aiming to meet international climate commitments by 2050. These investments could add 13GW of new green generation capacity to Mexico's electric grid by 2030. Alfredo Álvarez, EY Latin America's Energy Leader, sees Mexico's rise in the rankings as a sign of its potential to become a leader in clean energy. He emphasized the need to use this momentum to drive further investment and develop public policies supporting a sustainable energy transition, advocating for a greener and more resilient infrastructure.