FEATURE-AI data explosion in Mexico fuels rise of dirty energy
The country's power infrastructure is overloaded and pollution has increased due to the shortfall in green power, despite promises by government and industry to increase capacity. The data centers are huge warehouses that are the size of Olympic stadiums. They sprawl over industrial parks and house hundreds of servers, which consume a lot of energy. These servers power the most powerful technology companies, like Microsoft, Google, and Amazon. The report stated that while Microsoft waits for the connection to Mexico's struggling power grid, it uses seven natural gas generators to provide 10.5 megawatts per year.
AI data explosion in Mexico fuels growth in dirty energy
The lack of green power, despite promises by government and industry to increase capacity, has overloaded and increased local pollution. Masheika Allgood is the founder of AllAI Consulting. She provides information on data center environmental impacts. The data centers are huge warehouses that are the size of Olympic stadiums. They sprawl over industrial parks and house hundreds of servers, which consume a lot of energy. These servers power the most powerful technology companies, including Microsoft, Google, and Amazon. The report stated that while Microsoft waits for the connection to Mexico's struggling power grid…
Document shows that RPT-Mexico’s Pemex awarded five contracts to boost oil production, but failed to attract big players.
According to four sources with knowledge of the matter, and to a document viewed by us, the Mexican state oil company Pemex has signed five of the eleven new joint venture agreements it planned to sign before the year's end. Pemex, however, was unable to 'attract' major companies and the amount of production that the ventures could add is too small to help Mexico reverse its declining crude oil output. Pemex is trying to convince investors who are reluctant to sign up for 21 new joint ventures that could produce 450,000 barrels of crude oil per day, or about a quarter the amount of oil forecast by Mexico in 2033.
Document shows that Mexico's Pemex awarded five contracts to boost oil production, but failed to attract big players.
According to sources familiar with the situation and a document viewed by us, the Mexican state oil company Pemex awarded five out of the 11 joint venture contracts that it planned to sign before the year's end. Pemex, however, was unable attract major companies and the production that these ventures could add appears to be too small to help Mexico reverse its declining crude oil production. Pemex is trying to convince investors who are reluctant to sign up for 21 new joint ventures that could produce 450,000 barrels of crude oil per day, or about a quarter its projected output by 2033.
Mexico taps the debt markets again to support state oil company Pemex
For the second time in a week, the Mexican government has turned to international bond markets to support Pemex, its state-owned oil company. On Tuesday it issued bonds worth $8 billion. IFR's fixed income news service reported the new offer. It will help Pemex to pay for a bond buyback of $9.9 billion launched earlier in this month. Pemex reported that the buyback offer had been oversubscribed before the deadline for early tenders on Monday. IFR reported that the federal bond offering on Tuesday was divided into three tranches: $1.5 billion of notes maturing 2031; $4 billion due in 2033; and $2.5 billion due in 2025.
Mexico's budget deficit will be lower by 2026, as the economy grows.
The Finance Ministry said in its budget proposal on Monday that Mexico expects the budget deficit to drop to 4.10% in 2026, due to the expected growth of the GDP. The government is under pressure to reduce the deficit. It now expects to close 2025 with 4.32%. At the same time, it has pledged to increase social programs and strengthen the finances of the heavily indebted oil company Pemex. The government has also predicted that Latin America's 2nd largest economy will expand between 1,8% and 2,8%, an increase of up to 1.3 percentage points at both ends.
Mexico announces plans to reduce debt of Pemex and boost investment
Mexico's government announced on Tuesday a plan to move its heavily indebted oil company Pemex towards financial independence, as well as the creation of a new vehicle for investment and efforts to stabilise oil production. Claudia Sheinbaum, the president of Pemex, said at a recent press conference that the company "will not need the support of the finance ministry" by 2027. She was referring to government support received to reduce debt. Pemex, the world's largest energy company by debt, reported last week that it owed $98.8 Billion.
Mexico's crude oil exports fell 39% in June to the lowest level since decades
Official data shows that Pemex, the Mexican state oil company, exported 39% less crude in June than in June of last year, reaching its lowest level for decades. This was due to increased fuel production and refinery processing. The company reported that it exported 458,103 barrels of oil per day in June. This compares to 753,539 barrels a day in the same period a year ago. This is the lowest level recorded since 1990. PMI, Pemex’s international trading division, predicted in May that the company will export less this coming year as more products will be sent to local refineries including its new Olmeca refining plant at the port of Dos Bocas.
Sources say that Hokchi Energy, frustrated by Mexico's Pemex and its refusal to buy oil from them, pushed for a change in who purchases their oil.
Three sources said that Hokchi Energy in Mexico, frustrated with months of late payments from the state-owned company Pemex for its oil, gas and natural gas, sought to amend its contract so that it could do business with PMI Comercio Internacional. Hokchi Energy’s attempt to change the buyer of its production shows the difficulties in doing business with Pemex. One source stated that PMI, which imports and exports refined fuels like gasoline and diesel and exports crude oils, is seen as a much more reliable partner than Pemex.
Sources say that US fuel exports by land to Mexico have been halted due to increased scrutiny.
Three sources with knowledge of the matter confirmed on Tuesday that the Mexican government had halted the importation of U.S. gasoline into Mexico by road as part its crackdown on illegal deals. One source involved in the delivery of such trucks said that Mexican authorities are investigating import permits and increasing cargo inspections. The sources stated that there was no timetable for the return of the trucking business, and that fuel deliveries by rail or water to Mexico via the U.S. were not affected. Sources requested anonymity because the matter was not public.
Mexico's budget draft shows that the government expects economic growth of at least 1.5% by 2025.
The Mexican government expects the economy to grow between 1.5% and 2.3 % this year. This is down from an earlier estimate of 2.0% - 3.0%. Mexico's economy is expected to enter a recession, but the growth forecast by the finance ministry is more optimistic than the estimates of the private sector or the central bank. The Finance Ministry forecasts economic growth between 1.5% and 2.5 % in 2026. Latin America's No. The economy of Latin America's No. 2 was hit by a deterioration in investor confidence in recent months, U.S. Tariff threats, and a prolonged dry spell. It shrank again in the fourth and first quarters of this year.
CERAWEEK - Mexico's Pemex prioritises refining while diverting heavy oil from the Gulf
Margarita Perez of PMI, Mexico's company that handles trading, said Tuesday that Pemex, Mexico's state-owned oil company, expects to divert barrels of heavy crude from U.S. Gulf Coast refining companies as it ramps up its Olmeca refinery. Pemex began prioritizing refining in favor of its traditional export markets around six years ago, when the previous Mexican government sought to increase domestic supplies, especially diesel, while weaning Mexico off its dependence on motor fuels imported from U.S. refinedrs. Claudia Sheinbaum has continued this policy since taking office in October last year…
Mexico's Pemex, billionaire Slim renegotiate deepwater gas project
Five sources with knowledge of the situation said that the team of Mexican billionaire Carlos Slim and the state energy company Pemex were discussing significant changes to the deal to develop Mexico's first deepwater gas field. Grupo Carso, Slim's Mexican holding firm, signed a partnership agreement with Pemex last year in order to jointly develop the Lakach oil field in the Gulf of Mexico. The deal was made to revive the project that the state-owned company had twice abandoned due to high costs. Mexico-U.S. relations have been strained since then by President Donald Trump's threats to impose tariffs…
Mexico will extend $6.7 billion in debt to Pemex to pay for its debts by 2025
A budget proposal released on Friday showed that the Mexican government plans to transfer 136 billion Pesos (6.69 billion dollars) to Pemex, the state-owned oil company. This will help Pemex to pay its debts and repay loans. Pemex's financial liabilities of $97.3 billion include debt payments on bonds of almost $9 billion. Rating agencies have criticized Pemex for its dependence on government assistance to stabilize its finances. Claudia Sheinbaum took office as president in October. She has stated that the government will continue supporting Pemex, and CFE, a state-owned utility, because of their important role.
Sources say that the incoming Mexican government wants to open Pemex up to oil partnerships.
According to four sources with knowledge of the situation, the incoming Mexican government will encourage the state oil company Pemex, to form equity partnerships with private oil firms, a model that is not popular with the president. This move is to increase reserves in the face of a massive debt. These partnerships will be similar to previous Pemex joint-ventures with private oil companies, known as "farm-outs", that Mexico pursued via an energy reform implemented a decade earlier. This reform allowed oil regulators to allow private and foreign oil firms to partner with Pemex in exploration and production.
Oil Companies Swap Stakes in Mexico
With Mexico's government insisting that energy companies increase oil and gas output before it auctions off more of the country's vast reserves or offers more partnerships with state-run Pemex, firms ranging from foreign majors to local players are scrambling to buy and sell blocks they already own.The negotiations are creating a dynamic secondary market for oil acreage, which could be the only investment opportunity left for firms until leftist President Andres Manuel Lopez Obrador unblocks his predecessor's flagship energy reform…
Pemex Prepays $5.17 Billion in Bond Tender
Mexico's Pemex said on Monday it had paid $5.17 billion in a tender offer to prepay about a third of its bonds maturing between 2020-23, part of President Andres Manuel Lopez Obrador's latest effort to shore up the state oil firm.The company announced the bond tender earlier this month, using a $5 billion capital injection from the Mexican government.In addition, Pemex said it had paid a total of $34.066 million in accrued and unpaid interest on the bonds.In a separate statement, Pemex said it had lowered its debt by about $5 billion, and that would help strengthen its financial position.Citigroup Global Markets, Goldman Sachs, HSBC Securities (USA), J.P.
Mexico, Pemex to Hedge Oil Output
The Mexican government has said in its 2020 budget proposal that it will maintain a strategy of hedging its oil output against lower prices.Mexico’s state oil company Pemex will also continue a similar but separate hedging program. Mexico’s roughly $1 billion annual oil hedge is considered the world’s largest oil trade and the government has made the first moves to launch its program by asking banks for quotes.The budget document said the government had “fiscal shock absorbers” to protect against volatility that could affect public finances.
Fitch Downgrades Pemex Debt to 'Junk'
Fitch on Thursday became the first major ratings agency to downgrade the debt of Mexican oil company Pemex to "junk" status, in a major setback for President Andres Manuel Lopez Obrador's plans to revive the struggling state-run firm.Fitch changed Pemex's credit rating from investment grade to speculative grade, or "junk", with a negative outlook, a day after it downgraded Mexico's sovereign debt, a decision criticized by the Mexican finance ministry.The new rating for Pemex is BB+ and that of Mexico's sovereign debt BBB.A second downgrade by Moody's, which rates the bonds one notch above junk, could result in as much as $16 billion of forced selling by inv
Pemex Requests $8bn Loan Amid Heavy Uncertainty
Petróleos Mexicanos’ (Pemex) US$8 billion bank loan comes amid heavy investor uncertainty over the oil company’s debt load, but lenders wanting to maintain links with Pemex and the left-wing administration overseeing the firm may have little choice but to commit to the financing.The state-backed oil producer is tapping its relationship banks to refinance a chunk of liabilities, a big ask when there is minimal visibility over Pemex’s refining capabilities and doubts over future revenue for a company that was once a darling among fixed-income investors.“No one is excited about it,” said a senior banker following the transaction.“The credit is very difficult.