Pemex Needs Private Capital Infusion To Upgrade Refining, Fuels, Avoid 'Collapse'

Diesel Fuel News, Sept 17, 2001

Mexico's state oil monopoly, Pemex, needs a huge capital infusion for both upstream and downstream sectors, or else the enterprise will "collapse," Pemex general director Raul Munoz Leos announced. Pemex needs about $20 billion for refining system upgrades, including output volume improvements and cleaner, lower-sulfur fuels.

The refiner faces extra costly ULSD requirements later this decade as cross-border truck traffic grows due to NAFTA free trade agreements between Mexico, U.S. and Canada. Private capital must complement Pemex funds for refining upgrades, Munoz said at a press conference.