Mexico president’s ‘dream’ Pemex refinery hits another delay, internal data shows

MEXICO CITY,  (Reuters) – Mexican state energy company Pemex started sending 16,300 barrels per day (bpd) of crude oil to its new Olmeca refinery this week, less than 5% of its total capacity, internal data seen by Reuters showed, signaling another delay.

President Andres Manuel Lopez Obrador had built hugely ambitious infrastructure project in his home state Tabasco, describing it as “a dream come true,” with the promise of weaning the country off gasoline and diesel imports, most of which come from the U.S.

With two weeks away from the presidential election, Pemex officials have been keen to show progress with the refinery in Dos Bocas, and that Lopez Obrador’s promises had been kept.

However, the previously unreported data also showed that in August, the refinery is scheduled to receive 170,000 bpd, still half of the feedstock needed for the 340,000-bpd plant.

The volumes, which two sources familiar with the operations confirmed, raise fresh questions over the progress of the roughly $16 billion project, which has been running behind schedule and over budget.

Inaugurated in July 2022, the refinery was then projected to run at half capacity the following July and reach full capacity in 2023. But several deadlines have not been met.

Earlier this month, however, Pemex backtracked again and said it would process only 177,000 bpd this year before ramping up to full capacity in 2025.

The slow start at the new refinery in the southeastern part of the country means Mexico will still have to rely on refined fuel imports.

Mexico will also continue to export its heavy crude oil against earlier expectations that the new refinery would lead to a sharp decline, easing tight supplies globally as major Middle East producers have reduced exports to meet their OPEC+ pledges.

During Pemex’s last quarterly earnings call at the end of April, officials said the refinery would start producing diesel later this month and that gasoline would follow.

Diesel is widely considered easier to produce than gasoline. They did not mention crude oil processing rates or targets.

Pemex also has not publicly disclosed how much crude oil the new refinery has received so far.

The data seen by Reuters was included in a document the refining arm of Pemex sent to the exploration and production arm to allow for planning up until August.

The initial amount sent to the refinery this week was less than 1% of the 1.8 million bpd Pemex currently produces.