Mexico's state-owned oil and gas company Pemex expects petrochemical production to rise 25%
to 10 million tpy if sweeping energy policy overhaul measures are
approved, the company said on Thursday.
Pemex wrote on its official Twitter page that
output would increase from its current 8 million tpy with
the reform, which is expected later this year.
The reform would allow more private sector participation
within the petrochemical sector and the broader
downstream industry, which analysts have said is a prime target
The reform was proposed in August by President Enrique
Pena Nieto, who is looking to spur economic growthin
Mexico by attracting billions of dollars in investments
and improve competitiveness in the country by lowering energy
prices for manufacturers.
Though Mexico has the world's fourth biggest reserves of shale
gas, crude oil production has fallen for nearly a decade due to
a model in which Mexico pays foreign companies to drill wells
and provide other services.
Under Nieto's plan, new constitutional and contractual
arrangements could potentially reverse that decline.