VLO - Pemex to challenge Gulf Coast refiners in 2022

According to Bloomberg sources, Pemex is planning to up domestic refinery runs by 200-300kb/d in 2022 Having stabilized upstream volumes, with production increasing in 2020 for the first time since at least 2004, Pemex may be turning its focus to the downstream business The Company had planned to increase runs in 2023 with the addition of the Dos Bocas refinery, and it may be that this capacity is coming online earlier than expected Conversely, Pemex refineries were running at around 700kb/d through April of this year, versus guidance of 1.1mb/d, suggesting Bloomberg's sources may simply be noting the Company's plans to hit guidance next year In any case, higher domestic refinery runs in Mexico will mean more barrels of gasoline and diesel competing for market share in the Gulf, and fewer heavy barrels for Gulf Coast refiners like Phillips 66 (NYSE:PSX), Valero (NYSE:VLO) and Marathon (NYSE:MPC) to choose from, a

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Pemex to challenge Gulf Coast refiners in 2022