Petroleos Mexicanos (Pemex)’s new 340,000 bbl/d Dos Bocas Olmeca refinery is unlikely to start until late 2023 or early 2024, according to an Industrial Info Resources (IIR) alert.
Located in Tabasco, Mexico, the Olmeca refinery is one of President Andres Manuel Lopez Obrador’s flagship projects to support the development of state-owned Pemex. The previous start of production was planned for July 2023.
Pemex is starting auxiliary services before starting up processing units, pushing its first crude run to late 2023.
Start of production at the refinery will boost Pemex’s downstream sector and decrease imports of refined products, another one of President Obrador’s goals. Pemex is also expanding its downstream sector abroad with its acquisition of Shell’s majority stake in the 340,000 bbl/d Deer Park refinery in Texas last year.
"When the refinery is fully operational it will not only help reduce refined product imports but also decrease the amount of sour crude available for export,” said IIR Energy's Hillary Stevenson, senior director of energy market intelligence. “The Olmeca refinery will consume Maya crude, decreasing the volumes available to export to the U.S., which may strengthen the value of other Canadian and Venezuela sour grades.”
Mexico’s current total downstream capacity is 1.64 MMbbl/d, with its six refineries increasing to 52% total capacity this year from last year’s 50% and 43% in 2021.
Recommended Reading
US Refiners to Face Tighter Heavy Spreads this Summer TPH
2024-04-22 - Tudor, Pickering, Holt and Co. (TPH) expects fairly tight heavy crude discounts in the U.S. this summer and beyond owing to lower imports of Canadian, Mexican and Venezuelan crudes.
New Fortress Starts Barcarena LNG Terminal Operations in Brazil
2024-03-01 - New Fortress’ facility consists of an offshore terminal and an FSRU that will supply LNG to several customers.
What's Affecting Oil Prices This Week? (April 8, 2024)
2024-04-08 - Stratas Advisors says geopolitics are providing a boost for oil prices as conflicts escalate–and while crude oil and oil products continue to flow, the possibility of disruption is increasing.
Oil Broadly Steady After Surprise US Crude Stock Drop
2024-03-21 - Stockpiles unexpectedly declined by 2 MMbbl to 445 MMbbl in the week ended March 15, as exports rose and refiners continued to increase activity.
Imperial Expects TMX to Tighten Differentials, Raise Heavy Crude Prices
2024-02-06 - Imperial Oil expects the completion of the Trans Mountain Pipeline expansion to tighten WCS and WTI light and heavy oil differentials and boost its access to more lucrative markets in 2024.