In a significant development for Mexico’s energy sector, Pemex’s new Olmeca Dos Bocas refinery has officially begun operations, initially processing 170,000 barrels per day (bpd). The facility is expected to produce 87,000 bpd of gasoline and 65,000 bpd of diesel at this initial stage. This marks a critical milestone for Pemex and the Mexican government, which has been eagerly anticipating the full operational status of the refinery since its inauguration in 2022.
The announcement of the refinery’s startup was made at an event on Saturday, attended by key figures such as Pemex director Octavio Romero, President Andrés Manuel López Obrador, and President-elect Claudia Sheinbaum. During the event, it was revealed that Olmeca would reach its full processing capacity of 340,000 bpd by August 21, enabling the production of 175,000 bpd of gasoline and 130,000 bpd of diesel.
“Today, we are reaching a processing capacity of 170,000 barrels of crude oil, equivalent to 50% of the capacity of the Olmeca refinery, also starting the production of ultra-low sulfur gasoline,” stated Pemex director Octavio Romero. This achievement is seen as a pivotal step towards enhancing Mexico’s energy independence and refining capabilities.
The Olmeca refinery, located in Dos Bocas, Tabasco, is a flagship project for President López Obrador’s administration. The government initially projected an investment of $8 billion for the refinery in 2019. However, the actual cost has soared to $16.8 billion, sparking criticism and skepticism from experts who doubted the feasibility of the original budget estimate.
Despite the financial challenges, President López Obrador has remained committed to achieving fuel self-sufficiency for Mexico by 2024. This ambitious goal involves not only the Olmeca refinery but also the Deer Park refinery in Texas, along with two coking plants and the rehabilitation of six existing local refineries. However, the path to energy independence has been fraught with obstacles, as Pemex continues to rely on fuel imports to meet domestic demand.
Pemex director Octavio Romero emphasized that the ongoing improvements and investments in the refining sector, despite being a loss-making unit for the company, are crucial for boosting the country’s refining capacity. Romero projected that by the end of the current administration, Pemex’s combined processing capacity will reach 1.7 million bpd. This expansion aligns with Pemex’s current liquid hydrocarbon production level, which stands at approximately 1.7 million bpd.
The commencement of operations at the Olmeca refinery represents a significant achievement for Mexico’s energy sector. However, the journey towards complete energy self-sufficiency remains a complex challenge. As Pemex continues to navigate the intricacies of refining and production, the success of the Olmeca refinery will be closely monitored by industry experts and stakeholders, both domestically and internationally.
