Mexico: Pemex relaunches its petrochemical industry under the Sheinbaum era

Claudia Sheinbaum Pardo announces an ambitious plan to revitalize Mexico's petrochemical industry and explore new sources of revenue, including lithium mining.

Share:

Logo PEMEX

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

The new administration of Claudia Sheinbaum Pardo, President-elect of Mexico, is focusing on revitalizing the country’s long-neglected petrochemical industry.
Sheinbaum unveils an energy plan to revitalize Petróleos Mexicanos (Pemex) and explore diversified revenue sources, including lithium mining.

Reactivation of the petrochemical industry

Under the current administration, some efforts have been made to revive fertilizer production, but these remain insufficient, according to Sheinbaum.
According to Pemex data, fertilizer production increased by 97% under President Andrés Manuel López Obrador, reaching 1.5 million tons thanks to the reactivation of urea and ammonia plants, inactive since 1999.
However, Sheinbaum believes that Pemex still has some way to go to regain its competitive edge in the global petrochemical market.
In July, Pemex signed a $1.2 billion contract with infrastructure developer Mota-Engil to build a new fertilizer plant in the state of Veracruz.
This initiative is designed to increase production capacity and meet national needs.

Lithium exploration and reducing dependence on imports

Pemex is also considering a move into lithium mining, a field the company has yet to explore.
In collaboration with LitioMx, a company created by the Mexican government after the nationalization of lithium, Pemex will explore ways of participating in this promising market.
According to the US Geologic Service, the country’s lithium reserves stand at around 1.7 million tonnes.
Sheinbaum reaffirms Pemex’s commitment to producing crude oil solely to meet the country’s refining needs, continuing the policy of reducing dependence on imported fuels instituted by the López Obrador administration.
In June, Pemex produced 1.47 million barrels per day of crude oil, 269,000 barrels per day of condensate and 4.42 billion cubic feet per day of gas.

Production targets and outlook

Pemex CEO Octavio Romero Oropeza says the company has reached its highest level of crude oil processing since the second quarter of 2016, with a capacity of 1.2 million barrels per day at its six existing refineries.
It also announces that processing capacity will reach 1.7 million barrels per day by September, when the current administration will hand over to Sheinbaum’s team.
Total fuel production is expected to approach 1.3 million barrels per day by the first quarter of 2025, including production from Pemex’s Deer Park refinery in Houston.
So far in 2024, production has averaged 757,000 barrels per day, including Deer Park.
This strategic reorientation of Pemex under the Sheinbaum era marks a significant turning point for the Mexican energy industry, promising new opportunities and substantial economic renewal for the country.

In September 2025, French road fuel consumption rose by 3%, driven by a rebound in unleaded fuels, while overall energy petroleum product consumption fell by 1.8% year-on-year.
Société Ivoirienne de Raffinage receives major funding to upgrade facilities and produce diesel fuel in line with ECOWAS standards, with commissioning expected by 2029.
India is funding Mongolia’s first oil refinery through its largest line of credit, with operations scheduled to begin by 2028, according to official sources.
Aramco CEO Amin Nasser warns of growing consumption still dominated by hydrocarbons, despite massive global energy transition investments.
China imported an average of 11.5 million barrels of crude oil per day in September, supported by higher refining rates among both state-run and independent operators.
The New Vista vessel, loaded with Abu Dhabi crude, avoided Rizhao port after the United States sanctioned the oil terminal partly operated by a Sinopec subsidiary.
OPEC confirms its global oil demand growth forecasts and anticipates a much smaller deficit for 2026, due to increased production from OPEC+ members.
JANAF is interested in acquiring a 20 to 25% stake in NIS, as the Russian-owned share is now subject to US sanctions.
The US Treasury Department has imposed sanctions on more than 50 entities linked to Iranian oil exports, targeting Chinese refineries and vessels registered in Asia and Africa.
Khartoum et Juba annoncent un mécanisme commun pour protéger les oléoducs transfrontaliers, sans clarifier le rôle des forces armées non étatiques qui contrôlent une partie des installations.
The Namibian government signed an agreement with McDermott to strengthen local skills in offshore engineering and operations, aiming to increase oil sector local content to 15% by 2030.
Nigeria deploys a 2.2 million-barrel floating storage unit funded by public investment, strengthening sovereignty over oil exports and reducing losses from theft and infrastructure failures.
Despite open statements of dialogue, the federal government maintains an ambiguous regulatory framework that hinders interprovincial oil projects, leaving the industry in doubt.
Canada’s Sintana Energy acquires Challenger Energy in a $61mn all-share deal, targeting offshore exploration in Namibia and Uruguay. The move highlights growing consolidation among independent oil exploration firms.
The 120,000-barrel-per-day catalytic cracking unit at the Beaumont site resumed operations after an unexpected shutdown caused by a technical incident earlier in the week.
An agreement was reached between Khartoum and Juba to protect key oil installations, as ongoing armed conflict continues to threaten crude flows vital to both economies.
Alnaft has signed two study agreements with Omani firm Petrogas E&P on the Touggourt and Berkine basins, aiming to update hydrocarbon potential in key oil-producing areas.
Import quotas exhaustion and falling demand push Chinese independent refineries to sharply reduce Iranian crude volumes, affecting supply levels and putting downward pressure on prices.
Serbian oil company NIS, partially owned by Gazprom, faces newly enforced US sanctions after a nine-month reprieve, testing the country's fuel supply chain.
US-based Chevron appoints Kevin McLachlan, a veteran of TotalEnergies, as its global head of exploration, in a strategic move targeting Nigeria, Angola and Namibia.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.