Mexican Candidate's Plan to Build Refineries Raises Eyebrows
- New refinery estimated to cost $6 billion to $10 billion
- About 75 percent of Mexico’s gasoline in January was imported
Photographer: Susana Gonzalez/Bloomberg
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Industry observers have serious doubts about the Mexican presidential front-runner’s plan to build new refineries that could cost $6 billion to $10 billion.
Leftist leader Andres Manual Obrador’s proposal comes as the country was forced to import 75 percent of the gasoline it consumed in January while state-owned Petroleos Mexicanos’s refineries are crippled from a series of natural disasters. Last year, the plants were operating at less than half of their crude processing capacity, raising the question of the necessity for new plants when the existing ones have the potential to produce much more fuel.