PEMEX to Stop Flaring in Ixachi by 2023

PEMEX announced that it will gradually stop flaring at the Ixachi field. According to PEMEX CEO Octavio Romero Oropeza, the plant at Ixachi will receive 300MMcf/d of gas that will be processed to avoid flaring. PEMEX announced that by December 15, 2022, the Papan Measurement and Control Station (EMC) will be able to process 150MMcf and by January 15, 2023, its capacity will increase to 300MMcf, thus stopping flaring altogether. PEMEX was fined MX$42 million (US$2 million) for breaching its anti-emissions plans at Ixachi earlier this year.

The NOC has been widely criticized for excessive flaring necessary due to the lack of infrastructure to process all the gas it extracts and for causing environmental harm. The announcement aligns with recent government promises to protect the country’s environment.

Marcelo Ebrard, Mexico’s Foreign Minister, announced that Mexico would reduce flaring and increase its cut in emissions from 22 percent to 33 percent by 2030 at COP27. PEMEX also announced this week a cooperation agreement with the Environmental Protection Agency (EPA), which will provide the NOC with diagnoses and economic analyses to support decision-making for oil and gas operations to reduce greenhouse gas emissions, specifically methane. Nevertheless, PEMEX’s heretofore stunted efforts to reduce emissions have raised concerns over the company’s environmental practices.

This August, PEMEX announced it would invest US$ 2 billion to reduce the amount of gas lost through flaring. The investment plan comprised both PEMEX’s own resources as well as international credits for the refurbishment of Papan. This news came after energy regulator CNH announced in May it was investigating the NOC for excessive flaring at the Ixachi field. As Reuters reported at the time, satellite data corroborated the claim that the area around Ixachi had become one of the world’s largest sites for gas flaring.

Among other PEMEX efforts, the company launched a tender to request an opinion service on its prevention program and comprehensive control of methane emissions for PEMEX Exploration and Production (PEP). 

Furthermore, Reuters reported that the state-owned company had been risking fines rather than imperiling production. Pressured to meet production goals, PEMEX seemingly runs the risk of financial consequences. Despite fines and mounting environmental damage, the company continues its production without addressing its flaring issues. According to this source, the two most recent fines could each reach MX$120 million (US$6.2 million), the highest individual fines ever imposed by CNH.