Mexico’s Pemex Announces $5.5 Billion in Spending on Various Projects

The CEO of Mexican state-owned oil company Petroleos Mexicanos announced a total of $5.5 billion in investment in various industrial projects that he said are expected to create some 17,000 direct jobs. Emilio Loyoza made the announcement in a press conference after contracts were signed with several engineering firms to boost the production of cleaner fuels at Pemex’s Madero, Minatitlan, Salamanca, Salina Cruz and Tula refineries.
Those contracts amount to a combined $2.8 billion, or more than half of the announced investment outlay, and were signed with Ica Fluor Daniel, Tecnicas Reunidas, Samsung Engineering, Foster Wheeler USA Corporation, and a consortium made up of ACS, Dragados and Cobra.
The companies will build new plants and modernize existing ones to reduce the sulfur level in diesel by 97 percent and comply with environmental standards, Lozoya said.
These projects will create some 12,000 direct jobs and roughly 31,000 indirect jobs and have a positive impact on areas where the refineries are located, the chief executive added.
They also will improve air quality by reducing emissions of greenhouse gases by more than 12,000 tons annually.
Pemex currently produces some 100,000 barrels of gasoline per day that comply with rules on sulfur content and by next year ultra-low-sulfur gasoline will account for 100 percent of total production.
Lozoya also announced the start of Phase 2 of the Los Ramones gas pipeline, which will add 1.43 billion cubic feet per day of capacity to the nation’s pipeline network and transport natural gas from northern Mexico to the country’s central region.
Construction of that second phase will involve investment of $2.5 billion.
Lozoya said Phase 1 of Los Ramones, which runs from the country’s northern border to the state of Nuevo Leon, is under construction and is on schedule to begin operating in December of this year.
Pemex’s CEO said the remaining $200 million in investment was spent on acquiring the Agro Nitrogenados fertilizer plant, which the company will renovate.