Mexico has been preparing for a significant shake-up of its energy sector, which may be particularly beneficial for the country's petrochemical sector, according to industry experts.
Jorge Riancho Sanchez, market intelligence manager at petrochemical company Braskem Idesa, commented that the national petrochemical sector has been unable to develop in the past few years as its growth has been hindered by lack of raw materials. However, the reform is likely to be a real game-changer and a very positive move for the economy overall, he said during the BNamericas Energy Summit in Mexico.
Liberalization of Mexico's energy sector is predicted to attract investors and to lead to new projects and expansion of existing operations. The country is in an excellent position to develop a thriving energy sector because of the free trade agreements it has with a number of countries, as well as its geographical location and its good infrastructure.
Sanchez estimated that the country's investment deficit in the petrochemical sector had reached $20 billion. The outlook is particularly positive for polyethylene production, because Mexico consumes 15 kilograms of the material per capita annually. Such a demand could attract serious investments, which will not only help the country meet its domestic needs but will also create opportunities to export polyethylene, the BN Americas website noted.
Jorge MartÌnez Herrera, deputy director of planning at Pemex, noted that increased petrochemical production would only be possible with a surge in natural gas operations, the website said.