I've followed this story fairly closely. Two facts I did not know:
- Rocio Nahle, who became energy minister under Mexico’s new government in December, thinks the country can replicate Reliance Industries Ltd’s Jamnagar refining compound. But there are a few snags.
- Mexico is proposing to build a new refinery for $8 billion in three years, the amount of time and money it took Reliance to complete just a single phase of its complex. And Mexico plans to do so without using private funds, creating a strain on public coffers and calling into question the efficiency of a state-owned facility when the country’s six refineries are already losing more money the more fuels they produce.
- Mexico’s own refineries are operating at about 35% of their capacity because Pemex hasn’t had the funds to invest in them, making the country reliant on foreign fuels to meet domestic demand. About 65% of the gasoline that Pemex sells in Mexico is imported, mostly from the U.S.