Mexico will invest heavily in state-run oil company Pemex to increase production of polyethylene (PE), ethylene oxide (EO), other petrochemicals and fertilizers, President Claudia Sheinbaum said
The investments are part of Pemex's 2025-2030 work plan and aim to increase the company's PE production to 690,000 metric tonnes (t)/yr, Sheinbaum said Wednesday in a press briefing. Pemex currently has no significant PE production capacity in Mexico. Production of basic petrochemicals, including PE, has declined because of insufficient investment. Braskem Idesa, a fellow producer, has output capacity of 1mn t/yr of PE.
Pemex will also increase EO production to 250,000 t/yr. Pemex produced approximately 120,000-150,000t of ethylene oxide in 2023.
The government plans to allocate Ps20bn ($1.05bn) to the Cangrejera complex and increase production capacities at the Morelos and Cangrejera complexes for ethane derivatives, including PE and EO. This will help Pemex reach its production goal. Pemex will also upgrade the Escoluan petrochemical complex to produce 750,000 t/yr of urea. The plan includes producing 30,000 b/d of gasoline components and 330,000 t/yr of aromatic products.
Furthermore, the government plans to invest Ps8bn to rehabilitate the Lazaro Cardenas plant and build a new complex in Veracruz, Sheinbaum said, thus increasing increase production of phosphate fertilizers by 1.5mn t/yr and of urea by 1.6mn t/yr.
Pemex will primarily finance these projects, Sheinbaum said. The energy, finance and public credit ministries will coordinate to ensure timely payments to suppliers. Mexico's 2025 federal expenditure budget will include a federal government contribution of Ps136bn for debt amortization.
A new oil tax will replace previous taxes, Sheinbaum said. Rates for the new tax will be set at 30pc for hydrocarbons and 11pc for non-associated natural gas, which will offer fiscal stability.
