Pemex, the Mexican state oil monopoly, has announced that it is “studying the nature and timing” of its new Tula refinery. The announcement came after a series of repeated delays and rumors that the project could be suspended as a result of the government’s planned energy reform.
The Tula refinery would be Mexico’s first project like this since the 1970s and was planned to cost more than $10 billion. However, the entire project has been called into question ever since Pemex neglected to list the Tula refinery in its five-year business plan that was circulated last month. Pemex has asserted that that project has not been canceled, however, last week the lower house stated that the cancellation of the Tula refinery was on the possible agenda items up for discussion during the next meeting.
President Enrique Pena Nieto hopes to push a major energy bill through Congress before the end of the year, which the government hopes will encourage the spending of billions of dollars in new investments.
Currently, only a wall enclosing the perimeter of the project has been completed at the site, which is 51 miles (82KM) north of Mexico City. The project had been planned for completion by 2017, but industry insiders have stated that this is unlikely to be met.
Currently, only a wall enclosing the perimeter of the project has been completed at the site, which is 51 miles (82KM) north of Mexico City. The project had been planned for completion by 2017, but industry insiders have stated that this is unlikely to be met.