Pemex is committing $975 million to revitalize Mexico’s petrochemical sector, focusing on boosting production and reinvigorating key complexes.
The state-owned oil company will invest 20 billion Mexican pesos (approximately $975 million) as part of its 2025-2030 Work Plan, revealed by senior officials on February 12. The goal is to increase annual aromatics production to 330,000 metric tons (mt), ethane oxide production to 250,000 mt, and polyethylene output to 690,000 mt by 2030. To achieve this, Pemex plans to reactivate and boost operations at its Cangrejera and Morelos petrochemical complexes.
On February 12, Platts (S&P Global Commodity Insights) reported that the price for linear low-density polyethylene (LLDPE) delivered to Mexico City was stable at $1,060/mt, while blowmolding-grade high-density polyethylene (HDPE) was priced at $1,070/mt.
Pemex’s investment plan also includes modernizing the Escolín complex to increase urea production to 750,000 mt over the same timeframe.
Beyond petrochemicals, the company’s broader Work Plan outlines goals to increase production of liquid hydrocarbons and natural gas, maximize output from the Olmeca and Deer Park refineries, and reduce Mexico’s reliance on fertilizer imports.
The financing for these projects will primarily come from Pemex’s own budget, supplemented by public-private partnerships with other companies. Market sources suggest that reaching these targets will require significant investment. Many of these objectives align with the current administration’s strategy outlined in the National Strategy for the Hydrocarbon and Natural Energy Sector and the Plan México investment portfolio, announced in January 2024.