Mexico Unveils 2024-2030 Hydrocarbon Sector Plan

President Claudia Sheinbaum presented the 2024-2030 Hydrocarbon Sector Work Plan, outlining strategic actions for PEMEX to ensure sustainable hydrocarbon production, fuel security, increased petrochemical and fertilizer output, and alignment with broader government priorities such as food security. The plan is structured around six pillars: efficient exploration, sustainable production, a strengthened refining system, expanded petrochemical and fertilizer output, secure and efficient logistics, and greater clean energy generation.

PEMEX’s CEO Víctor Rodríguez detailed the company’s core functions within this framework, emphasizing production efficiency, energy security, social responsibility, economic contributions, environmental stewardship, and energy transition efforts. A key production target is to maintain crude oil output at a sustainable level of 1.8MMb/d throughout the administration. Gas production will also be prioritized to reduce reliance on imports, with a strong focus on lowering flaring.  

The plan reinforces Mexico’s longstanding push for fuel self-sufficiency. While the previous administration under President Andrés Manuel López Obrador hoped to eliminate fuel imports, delays in meeting this goal persisted. Investments in the refining sector, including the Dos Bocas refinery, have faced cost overruns and extended timelines, limiting their immediate impact.  

In the petrochemical and fertilizer segment, the government plans to invest MX$20 billion (US$977.770 million) in revitalizing the sector. This includes reactivating the Cangrejera complex as a petrochemical refinery to reduce import dependence and meet domestic demand.  

The strategy also emphasizes security in fuel storage, transport, and distribution. “PEMEX does not work alone; it works with the security cabinet, including SEDENA, the National Guard, the Navy, and the Ministry of Citizen Security,” Rodríguez stated, highlighting collaborative efforts to combat fuel theft and logistical inefficiencies.  

Energy transition efforts form another pillar, with PEMEX gradually integrating clean energy projects. “We are preparing. We will deliver good surprises, but give us time to show results,” Rodríguez said, suggesting that renewable initiatives remain in early development stages.  

Financially, the plan relies on multiple funding sources. The government has allocated MX$136 billion from the federal budget to help amortize PEMEX’s debt. Additionally, the oil company has begun implementing a supplier payment plan, with disbursements set to continue in 1Q25. The new fiscal framework consolidates PEMEX’s tax obligations into a single Oil Duty for Well-Being, set at 30% for oil and 11.63% for non-associated gas, aimed at improving financial sustainability.  

Sheinbaum also addressed concerns about high water and salt content in Mexican crude, an issue that has led some US refiners to demand discounts or shift purchases to Colombia and Canada. However, she downplayed the long-term impact. “It is a temporary issue with some platforms, and it will be resolved in the next 10 days,” she said.

Rodríguez also addressed a hunger strike by 200 workers on PEMEX’s Pol-Alfa platform, who protested poor food quality due to unpaid contracts with suppliers. He assured that the matter was under review.  

Regarding the downstream sector, Sheinbaum confirmed ongoing discussions with producers to cap gasoline prices at MX$24/L. She criticized price discrepancies at some stations, where fuel is sold at MX$26-27/L, and vowed continued oversight by the Federal Consumer Protection Agency (PROFECO).  

SENER highlighted the secondary legislation aimed at reinforcing PEMEX’s public character and increasing its operational flexibility. The new legal framework allows PEMEX to partner with private firms in case of technical or financial limitations, such as deepwater or heavy crude projects. However, no new oil blocks will be awarded, and existing contracts will undergo a government review to maximize national benefits.