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Dos Bocas Refinery Woes Continue

The state-owned Pemex Dos Bocas refinery project in Mexico could see a dramatic cost increase from $8.9 billion to as much as $12.4 billion, according to recent statements from the company’s board of directors.

This refinery project has seen several woes over its development, ranging from technical expertise shortages, market conditions, and weather issues that have continually delayed progress. Pemex has stated that a 2022 start date was still in effect for the 340,000 barrel per day refinery, but the company has specified that this date will be for trial production purposes.  By the end of last year, the project was reportedly 20-25% complete and making a start date in 2022-2023 at this pace would be unlikely.

The Dos Bocas refinery was designed to reduce the significant fuel imports primarily from the United States and to boost domestic refining as the country seeks to achieve energy independence.  

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