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Pemex to make subsidiary to sell petroleum products, gas, petrochemicals

December 02/2021

MOSCOW (MRC) -- Mexican state oil company Petroleos Mexicanos (Pemex) said its board has approved the creation of a new subsidiary to sell petroleum products, gas and petrochemicals domestically, said Reuters.

Pemex Chief Financial Officer Alberto Velazquez will head the new subsidiary and Antonio Lopez, deputy director of financial risk management and insurance, will step into his role, Pemex said. "This proposal advances the structural changes that Pemex's management has been implementing in order to strengthen the most important productive company in the country," the company said in a statement.

Pemex said the move was aimed at seeking a bigger share of the local market and would not lead to higher costs for the company. Reforms spearheaded by Mexico's previous administration opened up the country's energy sector to foreign and private producers, but President Andres Manuel Lopez Obrador's government has battled to roll these back. Lopez Obrador has said he wants to revive both Pemex and state power utility Comision Federal de Electricidad. In July, he said Pemex would distribute gas to consumers.

The American Petroleum Institute, a top U.S. oil lobby, recently raised concerns about Lopez Obrador's energy policies, arguing they undermined investor confidence and violated Mexico's trade commitments.

As MRC informed before, Pemex Petroquimica, a subsidiary of the Mexican state oil company Pemex, has resumed production of high-density polyethylene (LDPE) on line 2 in Cangrejera, Mexico after an unscheduled renovation. Earlier it was noted that Pemex postponed the restart of the second line with a capacity of 200,000 tonnes per year for the production of LDPE until August 10. It was originally planned that the launch of this production will begin at the end of July. The line was closed on 10 July.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,868,160 tonnes in the first nine months of 2021, up by 18% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,138,510 tonnes in January-September 2021, up by 30% year on year. Supply of propylene homopolymer (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding statistical copolymers of propylene (PP random copolymers) decreased significantly.

Petroleos Mexicanos (Pemex) is a Mexican state-owned oil and gas and petrochemical company. Since the nationalization of the Mexican oil industry in 1938, Pemex has remained a state-owned company and, by law, has exclusive rights to explore and produce oil in the country. Almost 60% of the company's revenues go to the state budget. Petrochemical products include, but are not limited to, polyethylene, polyvinyl chloride.
Author:Anna Larionova
Tags:petroleum products, crude oil, PP, PE, neftegaz, petrochemistry, Pemex Petrochemicals.
Category:General News
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