Indigenous consultation process to be held for the construction of a gas pipeline in Oaxaca

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Mexican authorities will open an indigenous consultation process for the construction of a key gas pipeline in Oaxaca state.

The consultation will be carried out by the energy ministry Sener in coordination with the national indigenous institute INPI, according to local press reports.

The project in question is the 247km, US$435mn Jáltipan-Salina Cruz pipeline between Oaxaca and Chiapas state and crossing the narrowest strip of land in Mexico, which has been touted by the government as a key project to find an outlet for excess gas and develop a series of related projects in the area.

In particular, the pipeline will support the development of the Tehuantepec interoceanic corridor (CIIT).

Although CFEnergía, the subsidiary of public utility CFE in charge of the project, launched a tender in August 2021, no winner has been announced so far. Energy authorities and President Andrés Manuel López Obrador have also discussed the construction of a related project, a pipeline to transport natural gas from Veracruz state to the town of Salina Cruz, Oaxaca. Authorities are mulling building a natural gas liquefaction plant in the town to produce for exports to Europe.

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National oil firm Pemex has reported that the first few months of its operation of the Deer Park refinery in Texas yielded a Q1 net profit of US$195mn.

During an investor presentation, the company said the refinery produced US$362mn in revenue in a favorable international environment where the difference between the price of crude and refined products has increased. Operational expenses were US$100mn, while interest payments totaled US$6mn.

The refinery has been processing 282,000b/d of crude on average, Pemex said, with an output of 294,000b/d, of which 115,000b/d gasoline, 109,000 diesel, and the rest split among other fuels, including bunker oil.

Shell’sUS$596mn participation in the facility last year drew controversy both in Mexico and the US and is a key component of Pemex’s plan to stop exporting crude and instead refine it in state-owned facilities. 

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Pemex’s exploration and production arm PEP launched a tender to hire maintenance services at its Dos Bocas maritime terminal off the coast of Tabasco state.

According to the tender documents, offers will be received on July 19.

Source: BN Americas

The Oaxaca Post