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Mexico’s Sheinbaum Vows to Support Pemex, Green Energy

(Bloomberg) -- Mexico’s leading presidential candidate Claudia Sheinbaum vowed to keep up support for state-owned Petroleos Mexicanos, even while pushing toward renewable energy.

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Sheinbaum on Monday laid out a plan to increase Mexico’s renewable energy capacity, striking a contrast with President Andres Manuel Lopez Obrador, who said the green transition remains distant. Both spoke during events to mark the 86th anniversary of Mexico’s oil expropriation.

Sheinbaum, who is leading in polls ahead of Mexico’s election, said she’d aim to keep oil production at Pemex at around 1.8 million barrels per day in the coming years, using renewable energy sources to meet any further demand.

The plan would keep Pemex and state energy company Comision Federal de Electricidad, or CFE, operating as public companies, she said. She also promised to make Mexico’s refineries more efficient, reduce fuel imports and grow Pemex’s mandate to include lithium extraction and energy production through thermal generation and renewables.

“It’s about strengthening Pemex in its main function of oil production, but at the same time, reinvigorating the company in the face of the current moment within the context of climate change,” Sheinbaum said. “Pemex is — and will continue to be — the company of all Mexicans.”

Read More: AMLO Celebrates Oil Takeover Anniversary With Vow to Back Pemex

Here are some other key points of Sheinbaum’s plan:

  • Mexico will stop gas flaring, and Pemex’s sustainability frameworks will be strengthened

  • Fuel and electricity prices won’t increase in real terms under Sheinbaum administration

  • Sheinbaum would strengthen energy transmission networks and maintain CFE’s control of around 54% of electricity market

  • Mexico would implement stricter emissions and energy efficiency standards, as well as focus on growing electric vehicles sector

(Corrects figure related to Sheinbaum’s plan for Pemex output.)

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