Mexico's Pemex to review feedstocks pricing policy

27 March 2002 23:02  [Source: ICIS news]

MEXICO CITY (CNI)--Mexican state-run oil monopoly Petroleos Mexicanos (Pemex) plans to review its feedstocks pricing policy this year to encourage strategic alliances with the private sector, the monopoly said in an annual report.

It wants to forge partnerships to renovate its petrochemical installations, as well as help build new facilities. Pemex said it hopes to increase installed capacity and grab market share as global growth begins to pick up in 2002.

The private sector has long complained that Pemex feedstocks pricing is sometimes above-market and not as consistent as it would like. Pemex has a monopoly on the production and sale in Mexico of natural gas and of basic petrochemical feedstocks.

However, private companies may own up to 100% of new secondary petrochemical installations and up to 49% of existing Pemex petrochemical facilities.

In the report, Pemex added it plans to increase production of methane derivatives by 1.7m tonne and boost ethane derivatives production by 251 000. Increases in acrylonitrile (ACN) and polypropylene (PP) output also are called for.

By: Robert Donnelly
+1 713 525 2653

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