Latest news with #Pemex
See - Sada Elbalad
4 hours ago
- Business
- See - Sada Elbalad
Russia Announces Readiness to Supply Mexico with LNG
Taarek Refaat As the global energy landscape shifts, Russia has extended a strategic offer to Mexico, presenting an opportunity for the Latin American country to diversify its energy sources and modernize its oil and gas sectors. In a bold move to solidify bilateral ties, Russia has proposed supplying Mexico with liquefied natural gas (LNG) and offering advanced oil extraction technologies to boost the country's energy capabilities. The Russian Ministry of Energy's recent announcement emphasized the country's readiness to support Mexico in overcoming the energy challenges it faces. Russia's Energy Minister, Sergey Tsivilev, stated, 'We are already working with Mexico, and we are prepared to share our advanced LNG technologies, along with supplying gas to support their energy needs.' The proposal underscores Russia's desire to be a key player in Latin America's energy future, positioning itself as a reliable partner for Mexico's growing energy demands. This offer is particularly timely, as Mexico's oil and gas sectors are under pressure from aging infrastructure, declining production rates, and the ongoing need for substantial investment. The Mexican government, seeking to boost its domestic oil output, has struggled to meet its production targets, with state-owned oil company Pemex falling short of the national goal of 1.8 million barrels per day. In addition to LNG, Russia's offer includes the transfer of sophisticated oil extraction technologies tailored to challenging geological conditions. These technologies could be pivotal in addressing some of the systemic issues faced by Pemex, including the need for efficient and sustainable oil recovery methods. Currently, Pemex operates over 30,000 wells, a significant portion of which remain dormant or underperforming due to funding limitations and outdated infrastructure. Despite efforts to rejuvenate dormant wells and enhance output from existing fields, the pace of recovery has been slow. The Russian offer represents a critical opportunity for Mexico to access the technical expertise necessary to increase oil production, improve field recovery rates, and ensure that its energy infrastructure remains competitive. Mexico's reliance on U.S. natural gas imports further complicates its energy security. With 72% of its gas needs met through imports, primarily via pipelines from the United States, Mexico remains highly vulnerable to fluctuations in the geopolitical climate and any disruptions to the supply chain. This dependence has become particularly concerning in light of past political tensions and the potential for future supply interruptions. The 2021 winter storm in Texas, which led to widespread energy disruptions in Mexico, highlighted the precariousness of this dependency. The gas shortages that resulted from the storm caused massive economic losses and widespread power outages, shaking the confidence in Mexico's reliance on U.S. imports. In response, Mexican officials have been accelerating plans to enhance the country's strategic gas storage capacity. The goal is to double storage capabilities by 2025-2026, in order to better insulate the country from any future energy crises. Russia's offer to supply LNG and share expertise in oil extraction presents an opportunity for Mexico to reduce its dependence on U.S. energy imports and diversify its energy sources. By tapping into Russian LNG, Mexico could ensure more stability in its energy supply while gradually shifting away from reliance on U.S. natural gas. This partnership could also provide Mexico with the tools it needs to modernize and expand its oil production, using Russian technologies to unlock reserves that have long been stagnant. For Mexico, this cooperation with Russia aligns with the broader vision of bolstering national energy security and infrastructure while fostering stronger ties with one of the world's major energy powers. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News China Launches Largest Ever Aircraft Carrier Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War Arts & Culture Zahi Hawass: Claims of Columns Beneath the Pyramid of Khafre Are Lies Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall News Flights suspended at Port Sudan Airport after Drone Attacks Videos & Features Video: Trending Lifestyle TikToker Valeria Márquez Shot Dead during Live Stream News Shell Unveils Cost-Cutting, LNG Growth Plan Technology 50-Year Soviet Spacecraft 'Kosmos 482' Crashes into Indian Ocean
Yahoo
a day ago
- Business
- Yahoo
Russia says ready to supply LNG to Mexico
By Natalia Siniawski MEXICO CITY (Reuters) -Russia is ready to supply liquefied natural gas (LNG) to Mexico and share energy sector technologies, the Russian embassy in Mexico said on Saturday on X. "We are already working with Mexico. We have excellent LNG technologies, and we are ready to share these technologies and supply LNG as well," Russian Energy Minister Sergei Tsivilev said. Russia is prepared to offer oil extraction technologies suited for challenging geological conditions, as well as solutions aimed at improving the efficiency of oil processing, the embassy added. Mexico's state oil company Pemex said in May it was working to reopen closed wells to boost production, as it struggles to meet the government's output target of 1.8 million barrels per day. Pemex has more than 30,000 wells across the country, about a third of which are shut. Internal documents reviewed by Reuters show the company is prioritizing wells with the potential to ramp up crude, gas or condensate output, though progress has been slow due to limited funding and aging infrastructure. Mexico meets 72% of its total demand for natural gas through imports, almost entirely from the United States. The fuel is used mainly to generate electricity and for industrial activities, with the vast majority of natural gas imports carried by pipeline.
Reuters
3 days ago
- Reuters
Mexican authorities discover clandestine mini-refinery in crackdown of illegal hydrocarbon trade
MEXICO CITY, June 19 (Reuters) - Mexican authorities this week discovered a clandestine mini-refinery in the eastern state of Veracruz, along with half a million barrels of crude oil they suspect were stolen from the country's pipelines. The government has sought to clamp down on theft of crude oil and refined products as well as illegal imports, known as huachicol, a practice that generates substantial losses for state energy company Pemex and the government. Authorities have previously linked organized crime and Pemex employees to the illegal trade. Reuters was unable to contact the owners of the clandestine refinery. Security Minister Omar Garcia Harfuch said on Wednesday on X that during intelligence actions and overflights, "a clandestine operation was identified." It produced artisan or alternative diesel, light naphtha or solvents, and treated oils or light fuel oil, he said, all without the proper permits in operations that posed a risk to local ecosystems. Authorities discovered 500,000 liters of crude oil as well as production infrastructure that fed the country's illicit fuel market. A Pemex source said that although the discovery was not significant in terms of the volume, it highlighted the impunity with which criminals operate freely in the country, as well as the extensive network of complicity between various sectors. Separately, authorities also discovered 1.2 million liters of hydrocarbons, fuel trucks and containers in the northern state of Nuevo Leon. In late May, authorities also recovered more than 3 million liters of hydrocarbon products in the southeast of the country.
Calgary Herald
5 days ago
- Business
- Calgary Herald
Business Council of Canada calls for pipeline expansion in Mexico
Article content Canadian companies could help Mexico reduce its lopsided dependency on imported U.S. natural gas by maximizing its own domestic supplies of the fuel, according to the head of Canada's top business group. Article content While Mexico has for decades been a major oil producer, local natural gas output has failed to keep up with demand as it instead favoured imports from U.S. suppliers, mostly across the border in Texas. Article content Article content Article content But Canadian firms see opportunities to increase investment in Mexican energy, said Business Council of Canada CEO Goldy Hyder after meeting with President Claudia Sheinbaum. Executives from major pipeline builders ATCO and TC Energy were present at the sit-down with the Mexican president at the G7 summit in Kananaskis. Article content Article content 'There was a general feeling that it's in Mexico's interest to diversify more its sources of energy. It's dependent on natural gas in the United States. And so obviously Canada can be very helpful in that regard,' Hyder said. 'We have projects that are already taking place there that are going to allow Mexicans to have energy security because the gas is in Mexico and it's being extracted.' Article content State-owned Petroleos Mexicanos, known locally as Pemex, has struggled for years to boost its natural gas output at home. But due to a growing network of pipelines, Mexico's reliance on gas from Texas sharply scaled up beginning around 15 years ago as U.S. shale projects took off. More than 70 per cent of the Latin American economy's demand for the fuel is now satisfied via cross-border imports. Article content Article content Sheinbaum met with the business council on Monday prior to her meeting with Canadian Prime Minister Mark Carney on Tuesday. U.S. President Donald Trump's unexpected return to Washington late on Monday led to the cancellation of what would have been his first in-person meeting with Sheinbaum. That sit-down was seen as one of the primary reasons for the Mexican president's attendance as an invited guest. Article content Article content Sheinbaum's likeminded predecessor, Andres Manuel Lopez Obrador, sought to wean Mexico off of imported fuel supplies while prioritizing more domestic refining capacity. Since she took office last October, Sheinbaum has mostly continued the policy though she has successfully pushed a reform to encourage private partnerships with Pemex. Article content 'We have the technological knowhow, we have the capital to invest and deploy, and you have a desire to not have all your eggs in a single basket about where you get your energy. And so we can help increase your energy security,' Hyder said. 'What the president and others were describing is more that we're looking for ways to promote the participation in an accelerated way of foreign companies to invest in Mexico.'
Reuters
5 days ago
- Business
- Reuters
Mexico's Pemex payment crisis: suppliers threaten July shutdown
MEXICO CITY, June 17 (Reuters) - The Mexican association that groups major global oil services companies warned that it is going through an "unprecedented crisis" due to the lack of payments from the state-owned oil company Pemex, the world's most indebted energy company. In a letter sent to President Claudia Sheinbaum and released on Monday afternoon, the association warned that many of these companies may have to stop operations as early as July. The letter did not specify the amounts owned to the group's members, which include Baker Hughes (BKR.O), opens new tab, Halliburton (HAL.N), opens new tab, Weatherford (WFRD.O), opens new tab, SLB Oil & Gas (SLB.N), opens new tab and Grupo Mexico ( opens new tab . Pemex, one of Mexico's largest companies, has an outstanding debt with an extensive list of suppliers and contractors of around $20 billion, in addition to another financial debt of $101 billion, despite the injection of billions of dollars from the government in the last few years to face the amortizations. In the letter, the Mexican Association of Oil Services Companies (AMESPAC) urged Pemex to process and release the invoicing for services rendered in 2024, to guarantee regular invoicing and timely payment for those of 2025, and to design a payment plan to settle all historical debts owed to companies of the sector. The service sector has significantly decreased its activities because of the lack of payments from Pemex, AMESPAC said in the letter, adding that "its cash flow is seriously compromised and in most cases it cannot guarantee operational continuity as of July of this year." "We expect a precise response that addresses our concerns and reverses the deterioration of national hydrocarbon production, which compromises Mexico's energy security and sovereignty," the letter concluded. This is not the first time that AMESPAC has called on the government and Pemex to urge payments and their impact on the state-owned company's hydrocarbon production. Last week, Reuters exclusively reported that Hokchi Energy, one of Mexico's largest private oil producers, has sought new ways to market its hydrocarbons in the face of delays in payments by Pemex. Despite numerous promises of payments and partial settlements, liabilities continue to accumulate while oil production continues to fall. Pemex reported an 11% year-on-year plummet in production during the first quarter, in addition to posting losses.
