Pemex crude export ban would shift USGC M&As, flows

Pemex crude export ban would shift USGC M&As, flows

Mexico City, 27 January (Argus) — Pemex's ambitious plan to hoard Mexico's crude supply — even if only partially implemented — could reverberate in the merger and acquisition marketplace around US refineries.

State-owned Pemex still needs to overcome technical obstacles if it is to stop exporting crude as part of its goal of making Mexico self-sufficient for fuels. The plan would likely require a significant increase in domestic refining capacity, as well as a more pragmatic business plan.

Still, the company's stated goal to cease exports by 2024 to instead refine its crude production domestically could muddy the waters around deals involving refineries in the US Gulf coast, where Mexican crude is an integral part of the crude feedstock mix.