Mexican state energy company Pemex has started sending only 16,300 barrels per day (bpd) of crude oil to its new Olmeca refinery this week, less than 5% of the refinery’s total capacity of 340,000 bpd, according to internal data seen by Reuters. This signals another delay in the highly ambitious infrastructure project.
President Andres Manuel Lopez Obrador had described the Olmeca refinery, built in his home state of Tabasco, as a “dream come true” with the promise of weaning the country off gasoline and diesel imports, most of which come from the U.S. However, the project has been running behind schedule and over budget.
The previously unreported data also showed that in August, the refinery is scheduled to receive 170,000 bpd, still half of the feedstock needed for the plant. This raises fresh questions over the progress of the roughly $16 billion project.
Inaugurated in July 2022, the refinery was then projected to run at half capacity the following July and reach full capacity in 2023. But several deadlines have not been met. Earlier this month, Pemex backtracked again and said it would process only 177,000 bpd this year before ramping up to full capacity in 2025.
The slow start at the new refinery means Mexico will still have to rely on refined fuel imports. It will also continue to export its heavy crude oil, against earlier expectations that the new refinery would lead to a sharp decline, easing tight supplies globally.
During Pemex’s last quarterly earnings call, officials said the refinery would start producing diesel later this month and that gasoline would follow. However, Pemex has not publicly disclosed how much crude oil the new refinery has received so far.
The initial amount of 16,300 bpd sent to the refinery this week was less than 1% of the 1.8 million bpd Pemex currently produces, further highlighting the delays plaguing the flagship Olmeca refinery project.