Mexico mulling new plan to capitalize petrochemical plants


MEXICO CITY�Mexico's Energy Secretariat is concocting a new scheme to inject much-needed capital into the country's state-run petrochemical plants. Mauricio Toussaint, undersecretary for energy operations, was quoted in local newspapers last week as saying the new plan would be released publicly in coming weeks.

The administration of President Ernesto Zedillo intended to privatize the plants entirely, but was prohibited from selling a majority interest in the plants by an opposition-dominated Congress. A much-criticized scheme to sell off only 49% of the control of the Morelos plant flopped in February 1999 due to lack of interest by foreign companies (OGJ, Mar. 1, 1999, Newsletter). This partial ownership scheme was a second version of the privatization plan, which originally was to have no limit on private investments. Contributing to the lack of interest, however, was Pemex's monopoly on ethane feedstock supply in Mexico.

While Toussaint did not give details on how the new plan would be different, it will still be limited to offering only a 49% stake in any of the plants. The government is expected to offer tax breaks and other incentives in an effort to attract a target investment of $330 million to boost production, particularly of ethylene.

The two plants most attractive to foreign investors are the Morelos and Cangrejera complexes, which are likely to be the first on offer should the new scheme receive approval by other government agencies involved, such as the Finance Secretariat and the Comptroller. Toussaint added that, if this effort fails, any new investment would have to wait until after the new government takes office in late 2000.

Unnamed sources in the Energy Secretariat told local newspapers that Dow Chemical Co., Nova Chemicals Corp., and Repsol-YPF SA, as well as the Mexican companies Alpek and Idesa, are considering participating.

Related Articles

West Cornwall Township hears from Sunoco Logistics

12/12/2014

Sunoco Logistics Partners outlined its safety systems during a West Cornwall Township meeting in Pennsylvania on Nov. 10.

Cost-benefit believability

12/08/2014 In anticipation of what might become the costliest federal regulation in US history, Congress should join the Supreme Court in reviewing the Enviro...

EPA poses tighter ground-level ozone pollution controls

12/08/2014 The US Environmental Protection Agency proposed reducing ground-level emissions limits to 65-70 ppb from its current level of 75 ppb. It also will ...

EPA will set RFS requirements for this year next year

12/01/2014

How bad does regulation of the Renewable Fuel Standard have to become before the US Congress ends a program broken beyond repair?

Asia-Pacific refining primed for capacity growth

12/01/2014

Global crude oil refining capacity in 2014 edged lower from 2013 (OGJ, Dec. 2, 2013, p. 34), according to the latest OGJ Refinery Survey.

Deloitte: US gas supplies rebuilt since last winter, EIA's Sieminski says

11/24/2014 The biggest issue this winter could be electricity generation in New England because of pipeline constraints rather than a drawdown of stored natur...

Petrobras initiates start-up of units at Abreu e Lima refinery

11/24/2014 Petroleo Brasileiro SA (Petrobras) has received permission to commission units at its Abreu e Lima refinery (Rnest) at the port of Suape, near Reci...

MRPL wraps Mangalore refinery expansion project

11/13/2014 Mangalore Refinery & Petrochemicals Ltd. (MRPL), a subsidiary of Oil & Natural Gas Corp. Ltd., has fully completed the long-delayed Phase 3...

Low-cost revamp enhances feedstock profitability for Chinese integrated complex

11/03/2014 In 2010, Liaoning Huajin Tongda Chemicals Co. Ltd. (Huajin), a subsidiary of China North Industries Group Corp. (Norinco), completed a series of re...

White Papers

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts


On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected