On the back of the 2014 Energy Reform, PEMEX lost a large share of its fuel business. In 2021, PEMEX presented a plan to recover part of the supply market by providing discounts and support with gaining CRE permits. According to the National Organization of Petroleum Distributors (ONEXPO), many service stations returned to work with PEMEX during 1H22.
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According to PetroIntelligence, PEMEX still supplies 83 percent of the gas station market and almost 50 percent of non-franchise gas stations. In 2019, the state-owned company supplied 83 percent of the market, but the figure dropped to 73 percent by 2021. In 2022, the percentage hit 85 percent.
PEMEX is planning to invest US$3.14 billion in 2023 and 2024 to further develop its shallow water gas Quesqui field on the coast of Tabasco. Alma América Porres, the Commissioner who voted against the project, said that the recovery plan was inappropriate for a gas and condensate field with Quesqui’s specifications and expressed her concerns about gas flaring at the site. Nonetheless, the NOC said that the plan will notably increase production in the area starting next year from 400MMcf/d to 1Bf3/d and condensate from 136,000boe/d to 250,000boe/d.
TC Energy issued its 3Q22 report and highlighted its natural gas pipeline projects and its alliance with CFE. The company announced strong results and underlined its strengthened commercial ties with Mexico, bolstered by its natural gas pipeline projects and alliance with state utility CFE. The report cited the alliance TC formed with CFE in August 2022 for the development of natural gas infrastructure, the Southeast Gateway pipeline.
Moody’s Investors Service downgraded PEMEX’s credit rating while the NOC lost money from its refined products in 3Q22. According to Nymia Almeida, Senior Vice President, Moody’s Mexico, the NOC’s decision to increase refining instead of focusing on production was a flawed strategy; PEMEX’s refining subsidiary lost US$7.37/b during 3Q22, reported Reforma.
CNH approved PEMEX’s Extraction Development Plan to invest in the Sini oil field. The NOC settled for a development alternative focused less on drilling and more on major repairs, as well as less investment to focus on greater economic results. CNH also approved Repsol to explore Cuenca de Burgos and Chevron and PC Carigali to abandon deepwater blocks.
TotalEnergies announced this weekend that it will stop managing 11 gas stations in Mexico, as well as its Bonjour convenience stores. The company points toward government regulations as the cause of the decision. TotalEnergies will cease its operations on Dec. 29, 2022, at the latest. The gas stations will not close entirely but rather operate under the management of other companies, while the rest of the company’s stations will remain open.