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Mexico vows that its long-delayed oil refinery will reach full capacity by the end of this year

by Patria

Mexico’s state-owned oil company, Pemex, is expected to start operating the long-delayed Dos Bocas oil refinery at full capacity this year, Mexican Energy Minister Rocio Nahle said this week.

The refinery has suffered delays and cost overruns estimated at $3.6 billion or more, and hasn’t yet begun producing usable gasoline.

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The plant is one of Mexican President Andrés Manuel López Obrador’s flagship projects to wean the country off fuel imports and achieve “energy independence.

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Originally, the plan for the refinery in López Obrador’s home state of Tabasco was expected to cost $8 billion. Even when it was announced, analysts doubted that the projected costs would be sufficient and were not optimistic about the project’s financial viability.

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In the following years, the cost of the refinery increased by 40% to an estimated $12.5 billion.

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Analysts believed that the refinery might not be able to produce gasoline in 2023 or even 2024.

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