In the midst of a global pandemic and a once-in-a century recession, Mexico needs to do a better job of allocating spending and stimulating investment to help with the economic recovery, according to a new report by the International Monetary Fund (IMF).
Regarding energy, the IMF team was critical of state oil company Petróleos Mexicanos (Pemex) and its use of limited capital.
“Pemex’s business strategy is crowding out resources for essential spending,” the analysts said. “Given its widening losses, it is advisable to focus production only in profitable fields, sell noncore assets, curb plans to increase refining output at a loss, and postpone new refinery plans until it is profitable to do so.”
The latter is a reference to the Dos Bocas refinery, which was a central part of President Andrés Manuel López Obrador’s campaign promise in 2018. Set for his home state, he has called it a key source of jobs and a way to achieve energy sovereignty through decreased dependence on fuel imports.
The refinery is scheduled to be completed in 2024 at a total cost of $8 billion. Construction has faced setbacks, and critics suggest it will not stay on schedule or budget.
Still, the administration remains highly invested in the refining and petrochemicals segment.
Of the five energy sector projects announced as part of the government’s infrastructure plan earlier this week, four were in the downstream segment.
CLICK HERE FOR FULL ARTICLE BY CHRISTOPHER LENTON ON NATURAL GAS INTEL
Comments
more recommended stories
Progreso, Yucatan will have a floating water park in front of the International MalecónVery soon Progreso will have a.
Official! This is the date of Daddy Yankee’s concert in CancunDaddy Yankee’s concert already has a.
They explore the subsoil of the Great Plaza of Chichén Itzá with geophysical techniquesThe Ministry of Culture of the.
Backstreet Boys and Gwen Stefany’s performances at the Tecate Emblema Fest were a huge successThis Friday, May 13, Backstreet Boys.
Yucatan State Government will grant credits to finance sustainable practicesThe call is addressed to Micro,.
Living Legends closed its tour on Friday the 13th at Teatro de CancúnThe acclaimed dance group from Brigham.
The “Conchanclas” arrived to celebrate Mother’s DayA bakery in the city of.
Katya Echazarreta is the first woman born in Mexico to go into space on a private flightBlue Origin will send its fifth.
Campeche’s Mercado Verde: More Than a Place of PurchaseFrom colourful colonial buildings, to impressive.
IMPORTANT: Scrapping campaign in Merida (Descacharrización) is taking place this weekendThe scrapping operation will be held.
Leave a Comment