Mexico's Leading Presidential Candidate Sheinbaum Presents Energy Plans

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Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Mexican presidential candidate Claudia Sheinbaum has vowed to maintain her support for the country's state-owned power and petroleum companies Pemex (Mexico City) and the Federal Commission of Electricity (CFE) (Mexico City) as well as decrease imports of refined products as part of her energy plans.

Sheinbaum, the ruling party's presidential candidate, presented her energy plans this week, which include the support of Pemex and the CFE, as well as the promotion of renewable energy.

Just like incumbent President Andres Manuel Lopez Obrador, Pemex will remain at the heart of Sheinbaum's agenda. The presidential candidate vowed to maintain the energy company's oil output of about 1.8 million barrels per day (BBL/d) from the current 1.5 million BBL/d of oil and about 280,000 BBL/d of condensate produced. It remains unclear from the candidate's speech if she meant to maintain the current production levels or seek a higher oil output (excluding condensates).

Sheinbaum promised to continue enhancement works in Pemex's domestic refineries and reduce the dependence on fuel imports. This could be achieved by starting the new 340,000-BBL/d Dos Bocas Olmeca refinery.

In March, Industrial Info reported that the startup of the new refinery would be postponed despite government promises. The Lopez Obrador administration was expected to start the refinery in September last year, though it moved the inauguration to February 28, which was also canceled. According to IIR, the commercial startup of the unit has been pushed to the second half of 2024, rather than May as previously scheduled. Subscribers to Industrial Info's Global Market Intelligence (GMI) Refining Project Database can click here for details on the project.

More importantly, she added that Pemex could start a market expansion into the renewable and lithium industries under her administration.

"Pemex's main function is the exploitation, refining, and marketing of petroleum, natural gas and their derivatives. But Pemex, like other oil companies, can participate in the exploitation of lithium, for example, and in the production of thermal and electrical power with renewable energy sources. It is about strengthening Pemex with its main function but at the same time moving forward with the strengthening of Pemex in the face of climate change," said Sheinbaum.

On the electricity front, the presidential candidate said the CFE will continue to guarantee the distribution and generation of electric power, and it will maintain its generation market share of 54% or higher, while the private sector will remain about 46% or below. Sheinbaum highlighted that she will establish "clear rules" that will aim to promote the development of Mexico. "If not, CFE has to assume full responsibility," she added.

According to Reforma, Sheinbaum is leading the poll with 58% of the intended vote, some 34% ahead of the opposition's candidate Xóchitl Gálvez.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).