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Mexico’s Refinery Output Slides as Government Opens Fuel Market

  • Pemex’s six refineries are operating at 51% of capacity
  • State producer seeking to sell stakes as budget shrinks

Mexico’s refineries, already operating at barely half of capacity, are facing more headwinds in the form of competition from imported fuel and a falling maintenance budget for 2017. 

Mexico opened its energy industry to outside investment and more competition in 2013 in a bid to offset a rapid decline in oil production. Petroleos Mexicanos, the state-owned oil company, is headed for its 12th consecutive year of declining output and has seen its government-controlled budget slashed for 2017. The CEO of Pemex is seeking joint-venture partners for its six refineries in Mexico.