PEMEX Reduces Production Estimates
PEMEX has reduced its total production estimates for the Ek-Balam field by 30 percent, according to a development plan adjustment that the NOC submitted to CNH. Ek-Balam is a shallow-water field and one of PEMEX’s largest and most productive assets. The field’s productive life cycle is expected to last all the way to 2039, but the barrels to be produced during that time have been reduced from 334MM to 234MM.
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AMLO Approaches Oil Supply Shortage With Fuel Subsidy
President López Obrador reassured the public that Mexican gasoline prices will not be affected by the shortage in oil supply caused by the blockade on Russian crude supply by the US and the UK. By using the currently elevated oil prices as a buffer, the government says it can establish a subsidy. The president stated on March 8 that even though the Mexican export basket's crude oil costs have increased rapidly from US$71/b to US$115/b, there will not be an increase in gasoline prices. Instead, the government will handle the deficit through a new subsidy enabled by the elimination of the special tax on production and services (IEPS). This measure, funded by Mexico’s own profits from these higher prices, will likely continue until the market stabilizes.
Braskem Idesa Seeks Independence From PEMEX
The Brazilian-Mexican petrochemicals giant Braskem Idesa is pursuing a strategy to become independent from PEMEX. Now that a feud between the companies has been resolved, Braskem is constructing a new ethane terminal, of which engineering works are about 40 percent completed. The new terminal, equipped for ethane storage and imports, will be in Coatzacoalcos, Veracruz and requires a total investment of US$400 million. The terminal will also provide ethane to other petrochemical complexes and will have an ethane capacity of 65Mb/d, enough to supply the plant’s needs. Braskem furthermore invested US$150 million to expand production at its Ethylene XXI plant by 20 percent.
New PPG Comex Division Plays Key Role at Dos Bocas Refinery
Through the success of its new professional division Pintawil del Bajío, PPG Comex is continuing to expand its role as a key supplier of Protective & Marine Coatings (PMC) products and technology at the Dos Bocas Refinery. The company is participating in the project through several of its clients. One of these is Sisttemex, a Mexican company that manufactures steel towers and structures and oversees construction for important sections of the Dos Bocas facilities.
Natural Gas Leaders Discuss New Opportunities
Spearheaded by Picarro, Hidden Kitchen and Mexico Business, a unique gathering of leaders in Mexico’s natural gas sector took place in an undisclosed location in Mexico City’s historical center. Attendees discussed the future of the industry, emphasizing pressing issues that included distribution, infrastructure and safety. The dinner was hosted and sponsored by Picarro, a global leader in analytics-driven leak detection and emissions management solutions. The company was represented by Vice President of Energy Vincent Gaeto and International Energy Business Director Malvin Delgado.