PEMEX Coking Unit in Tula to Be Ready by 2025

PEMEX’s coking unit in Tula is now expected to be operational by early 2025, according to Octavio Romero, CEO, PEMEX. This revised estimate marks a significant delay from initial projections and comes as the facility approaches a decade since construction began.

Romero announced in a press conference, together with President Andrés Manuel López Obrador, that "the Tula coker unit, which converts fuel oil into gasoline, will be fully operational by 1Q25." The project's timeline has been repeatedly pushed back, reflecting the technical and financial challenges PEMEX has faced. Initially slated to begin operations in 2023, the project was later delayed to mid-2024 and subsequently to late 2024, before the current 2025 estimate.

The coking unit is central to Mexico's strategy for energy self-sufficiency, aiming to reduce imports of gasoline, diesel, and jet fuel. However, the government has acknowledged that this goal will not be achieved before the current administration ends.

Construction of the Tula coking unit began in 2016 but was halted due to revelations of corruption involving Odebrecht executives bribing PEMEX officials to secure lucrative contracts. The project's estimated cost is currently MX$60 billion (US$3.28 billion), though the true cost remains uncertain due to ongoing technical challenges. 

Last year, ASF detected financial irregularities in PEMEX's operations, noting an amount of MX$62.44 million that required clarification in relation to the maintenance and utilization of residuals at the Tula refinery. 

Refineries remain a focal point for ASF. In the last three years, ASF has detected possible losses of more than MX$241 million, mainly due to overpayments, delays in maintenance work and irregular contracts.

Currently, Tula’s power plant is under review for emission violations. The Federal Attorney for Environmental Protection (PROFEPA) and SEMARNAT were mandated to review and verify the operations of the Tula thermoelectric plant to ensure it implements necessary measures to control emissions and mitigate environmental damage without affecting electricity supply, according to a federal court ruling.

A significant setback to the government’s self-sufficiency strategy is the predominant production of fuel oil above other fuels such as gasoline and diesel. In Mexico, 30% to 35% of each barrel processed in the country’s six refineries ends up as fuel oil, historically reducing the profitability of PEMEX’s refining operations. This business segment has reported net losses for 22 consecutive years. The coking unit will enable PEMEX to produce more gasoline and diesel from fuel oil.

Another significant part of the self-sufficiency strategy includes the Dos Bocas refinery, for which important budget allocations have been made. According to the president, savings achieved with his strategy against huachicol have been able to finance this refinery, a project that has doubled its costs and has presented several delays. Yet, the government says that the Dos Bocas refinery will start production at 100% by the end of July.