Dos Bocas refinery is a risk for public finances

The Dos Bocas refinery of Petróleos Mexicanos (Pemex), inaugurated this Friday, and the purchase of the Deer Park refinery, located in Houston, Texas, more than a solution, could become a burden for public finances and the Mexican economy. , assured the experts of the Mexican Institute of Finance Executives (IMEF) in videoconference.

Jessica Roldán, vice president of the IMEF, commented that “the construction of the Dos Bocas refinery has a series of elements that have been surrounding it, such as a doubtful investment in the sense that it cannot contribute to economic growth, that it does not generate a environment of increased production or improved competitiveness.

The expert considered that, to the extent that Petróleos Mexicanos (Pemex) does not meet its objectives, “definitely the risk for public finances will be latent, but above all because of the resources that are dedicated to unproductive activities, which could be destined to others within public spending. This represents an important opportunity cost, not only for the government, but in general, for the country’s economic activity and growth”.

“We cannot stop worrying about the expenses that may be in the fiscal budget of our country, the amounts that are allocated to this activity may be used for other purposes that may be more productive for the Mexican economy,” said Alejandro Hernández Bringas, national president of the Institute.

AMLO inaugurates Dos Bocas. It is already a dream come true,” said President Andrés Manuel López Obrador at the inauguration of the mega-refinery known as Dos Bocas, but officially called Olmeca, accompanied by the executive president of Pemex, Octavio Romero Oropeza, and the secretary of Energy, Dew Nahle.

“We are going to be able to process 340,000 barrels of oil (…) I want to emphasize that this was the best site because it is already from a Pemex terminal, all the oil from land and shallow water from Tabasco and Campeche arrives here, 1 million barrels per day,” said AMLO, from Paraíso.

Greenpeace and Cemda recall Pemex’s disaster history

Minutes before the inauguration of President Andrés Manuel López Obrador to the first phase, which is the administrative and non-operational start-up of the Olmeca refinery in Paraíso, Tabasco, 12 climate organizations, including Greenpeace and the Mexican Center for Environmental Law (CEMDA ) recalled that just a year ago the Ku-C platform of Petróleos Mexicanos (Pemex) caught fire in the Sonda de Campeche, for which they called what will be the new crude oil processing plant “ecocide” and assured that Pemex occupies the ninth place among the companies that have contributed the most to the global climate crisis.

In a statement, they detailed that the Mexican state company had more than 24,000 million tons of CO2e emitted in 2017. The climate crisis requires us to take decisive action to save the life systems of our planet and avoid the loss of human and non-human lives, they explained.

“Mexico continues to undertake actions that move it away from fulfilling its national and international climate commitments. The inauguration of this refinery will mean the emission of 2.16 million tons of CO2e (MtCO2e) per year, or the equivalent of the emissions of more than 855 thousand vehicles compacts per year. This puts at risk the fulfillment of the emission reduction goals set out in the NDC by 2030, by adding an additional 17.3 MtCO2e,” they detailed.

Meanwhile, they reported that Pemex accumulates a history of disasters: between 2018 and 2021, it accumulated 172 high-impact spills and leaks. Only in the month of June this year, two incidents have been reported.

Such were the June 4, the explosion of a Pemex pipeline in Veracruz caused a fire that took four days to put out, the leak had been reported 3 months earlier. In addition, on June 9, the European Space Agency detected a massive leak of methane (a greenhouse gas with a heat capacity up to 86 times greater than that of carbon dioxide) from a Pemex platform off the coast of Campeche.

“In the midst of a climate crisis and despite environmental disasters, the federal government has ordered the implementation of a financial rescue plan for Pemex, in addition to the construction of the Olmeca refinery in Dos Bocas, the purchase of the Deer Park refinery in Texas and the increase in crude oil production,” they stated, “public spending on infrastructure for the fossil industry, under the pretext of “guaranteeing the country’s development.”

The climate crisis is a reality in the Mexican territory and its population already suffers from it seriously. An example of this is the scarcity of water in Nuevo León, the floods in Tabasco or the forest fires in many areas of the country, they ended.