US Halts LNG Projects: The Week in Oil and Gas

The United States’ halt on approvals for LNG exports created scrutiny for Mexico, as Greenpeace launched a statement asking the country to do the same. In other news, CNH approved several of PEMEX’s projects while it struggles with debt to its suppliers.

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US LNG Project Halt’s Impact on Mexico

The Biden administration has frozen approvals for new LNG exports to non-Free Trade Agreement (FTA) countries, citing the need to update climate and health impact analyses. This signals a shift in the United States’ approach to oil and gas ventures. Critics highlight Biden's mixed environmental record, while the decision adds pressure on other countries, impacting Europe's energy sufficiency concerns. Mexico's reliance on US natural gas faces scrutiny amid uncertainty.

Mexico, Venezuela Sign Agreement for Hydrocarbon Cooperation

Mexico and Venezuela strengthen collaboration as PEMEX and Venezuela's oil authorities signed a memorandum for sharing technical expertise and best practices. The agreement aims to deepen the relationship between both countries, fostering mutual benefits in hydrocarbon activities. The move aligns with PDVSA’s broader strategy, including recent agreements with Refinería di Korsou and Repsol. The collaboration comes amid the temporary lifting of US sanctions on Venezuela, allowing normalization of oil-related contracts.

CNH Greenlights Fortuna Nacional Program Extension by Perseus

CNH approves modifications to the transition program for the Fortuna Nacional field proposed by Perseus, extending its duration by a year. The plan includes well drilling, reservoir model updates, and other activities with a total project cost of US$5.71 million. The aim is to recover 48,660b of condensate and 1.09Bcf of gas, targeting a maximum production of 191b/d of condensate and 4.4MMcf/d of gas. In the same session, CNH confirmed Eni’s exploratory well, Sáasil-1EXP, in shallow waters off the coast of Tabasco.

SBL Receives Overdue Payment from PEMEX

Schlumberger (SLB) is recovering a US$560 million payment from PEMEX, part of the US$1.015 billion owed. This highlights PEMEX’s non-payment issues, impacting production, investment, and supplier viability. PEMEX’s mounting debt with oil service providers raises concerns about ongoing activities and project viability, prompting warnings from industry experts and the Mexican Association of Hydrocarbon Companies (AMEXHI).

Cadereyta Refinery’s Impact on Monterrey’s Pollution Crisis

Thousands in Monterrey demand the closure of PEMEX’s Cadereyta refinery, blaming it for 90% of the city’s sulfur dioxide emissions. Protesters urge President López Obrador to act, citing international commitments to clean energy. Governor Samuel García calls for sanctions after a smog incident, while environmental officials warn of a possible shutdown. Meanwhile, PEMEX plans for refinery rehabilitation focus on 17 facilities to meet local demand and increase crude processing, aiming for energy self-sufficiency.

PEMEX’s Offshore Platforms Boost Hydrocarbon Production

PEMEX is advancing the construction of six relocatable offshore platforms at Tampico's port for Gulf of Mexico hydrocarbon production. The initiative involves crafting four temporary and two permanent structures in the Ayatsil, Kayab, and Pit fields. The strategic placement of these platforms aims to enhance production without new facility construction. Octavio Romero, PEMEX CEO, anticipates installation within the year, with production starting in 2024.