By Karina Suárez

The most indebted state-owned oil company in the world recognizes the burning of gas and stationary combustion in its plants as one of its main concerns

Amid controversy over the pollution generated in its refineries, Petróleos Mexicanos (Pemex) has presented its Sustainability Plan to investors with the aim of reducing polluting effects, environmental damage, and social risks in its operations. “On the road to sustainable performance and as a productive state-owned company, Pemex is clear about its contribution to Mexico’s energy self-sufficiency and its transition to a scenario of efficient, safe, and low-emission operations,” Octavio Romero Oropeza, director of the state-owned company, states in the document.

The initiative, with medium-term goals set for 2030, foresees a total expenditure of up to $4.07 billion on the implementation of the plans over the next six years. The funds will be allocated to the rehabilitation of less polluting machinery and equipment, reinforcement of the current methane leak detection program, daily satellite monitoring to prevent these failures, among other actions.

With these actions, the oil company aims to achieve by 2030 a 61% reduction in greenhouse gases in exploration and production, 60% less in refineries, and 40% less in processing. In addition to a 30% reduction in methane emissions by 2030 and an expenditure of up to $420 million to prevent its processes from releasing carbon dioxide emissions directly into the atmosphere.

The document also promises to replace natural gas reforming hydrogen with green hydrogen via pipeline from Texas to the Cadereyta refinery and double the reuse of water in refineries, as well as to gather 2,000 hectares of protected natural areas.

Such ambitious goals require significant investments. Only in reducing routine burning in exploration, production, and gas processing subsidiaries, the state-owned company estimates an expenditure of $2 billion to $3 billion. With these resources, the company plans to reduce 15 million tons of carbon dioxide equivalent annually.

Just to kick off the sustainability plan, the oil company, with a total liability of $106 billion, estimates that it will require up to 18% of its capital investment—spending on equipment and machinery maintenance—this year alone. In detailing how it will finance this plan, Pemex acknowledges that it will need to negotiate with the Ministry of Finance the financing mechanisms for these projects.

The oil company, which in recent days has been criticized for the level of polluting emissions in its refineries, assures that after 2035, it will build refining centers focused on the production of petrochemical products. As part of the risks, Pemex acknowledges that the national fuel market is exposed to public policies, technological changes, and that consumers will increasingly prefer products associated with the energy transition.

In 2023, Pemex emitted 60.5 million metric tons of carbon dioxide equivalent, representing a 12% reduction from the 69.8 million metric tons of these greenhouse gases it produced in 2022, according to its latest financial report sent to investors.

Reference