Pemex to ramp up gas utilization

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Thursday, November 10, 2016

Mexico's state oil firm Pemex aims to increase its gas utilization from shallow water reserves to 98% of the total over the next three years, up from the current 96%.

The previous goal of 98% had been reduced by 2 points this year as a result of the 100bn-peso (US$4.8bn) cut to the company's budget, but the 2016-19 strategic gas utilization plan formulated by hydrocarbons commission CNH has restored the target, Pemex said in a statement.

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The goal forms part of Pemex's five-year business plan unveiled earlier this month.

To achieve the target, the company will invest US$3.6bn, mainly in the Ku Maloob Zaap field, which contributes 39% of the country's oil production and 10% of its gas. The investment will include a gas pipeline and two pumping platforms.

Pemex aims to add 160Mf3/d to its gas and derivatives output to supply the country's petrochemical plants in the southeast, such as the Pajaritos complex in Veracruz (pictured).