Pemex Plans to Boost Mexican Petrochemical Industry, With Focus on Veracruz
Pemex last week said it plans to expand petrochemical operations in Mexico’s Veracruz state as part of its plan to boost domestic production of ammonia and urea – two feedstocks critical to fertilizer production – by 200% by 2028.
Pemex put the cost of the upgrades at an estimated 13.9 billion pesos ($757 million).
Speaking at the annual International Energy Congress in Veracruz, officials with the Mexican state-owned oil company highlighted Veracruz’s growing role as a hub for petrochemicals and energy investment.
Victor Rodríguez Padilla, the company’s executive director, said the production expansion will center on the company’s Cangrejera, Morelos, Cosoleacaque, Cuauhtémoc, Pajaritos and Escolín plants, all of which are in Veracruz.
“Pemex’s industrial strategy is once again refocusing on Veracruz,” he told the conference.
Pemex officials said the Cangrejera plant will play a key role in ammonia production, while the Morelos complex will boost production of urea.
The projects are expected to help Mexico get closer to becoming self-sufficient in fertilizer production, reducing the need for imports.
“Pemex and Veracruz have always been linked. [And] that relationship is being renewed with a focus on petrochemicals, fertilizers and the productive chain that benefits our farmers and our economy,” Rodríguez Padilla said.
Urea output at the Escolín plant will be increased, while the Cangrejera and Morelos facilities will expand output of ethylene subproducts and aromatics, according Juan José Vidal, an official at Sener, Mexico’s energy department.
The planned capacity expansions align with Pemex’ 2025-2035 strategic plan, which was released last month. In that document, the company said ammonia production this year will total 319,000 metric tons and is expected to reach 957,000 mt starting in 2028.
In 2025, Mexico urea demand was put at about 1.6 million mt, of which Pemex only provided 19%. By 2029, when demand is projected to reach 1.97 million mt, Pemex said it aims to produce enough to meet 84% of domestic demand with 750,000 mt coming from its Escolin processing center alone, according to the document.
In addition to the planned projects in Veracruz, Pemex in the strategic plan said it will rehabilitate storage and distribution facilities in Oaxaca and Sinaloa to ensure smooth operations across the supply chain.
At last week’s meeting, the company stressed that the urea and ammonia projects will contribute directly to Mexico’s agricultural sector, where fertilizers prices remain high. By producing more domestically, officials say they expect to stabilize prices and improve supply.
Veracruz Governor Rocío Nahle and former energy minister said Pemex’s planned expansion in the state reflects a coordinated effort between federal and local authorities to increase energy sovereignty.
She also said Veracruz is already home to critical infrastructure for oil, natural gas and petrochemical production, making it a natural base for Pemex’s new initiatives.
–Reporting by José Luis Adriano, jadriano@opisnet.com; Edited by Karla Omaña,
komana@opisnet.com, and Jeff Barber, jbarber@opisnet.com