en.Wedoany.com Reported - Mexico's Secretary of Energy (SENER), Luz Elena González, and the General Director of Petróleos Mexicanos (PEMEX), Juan Carpio, unveiled on June 5 a comprehensive revitalization plan for the petrochemical and fertilizer industries, supported by an investment of 93 billion pesos between 2026 and 2030. This represents PEMEX's most significant downstream investment commitment in this sector in at least two decades, aimed at rebuilding domestic petrochemical and fertilizer production capacity to safeguard Mexico's food and energy sovereignty.
In February of this year, PEMEX outlined strategic investments of approximately 425 billion pesos for 2026, covering oil fields, crude oil and natural gas production, and refinery modernization. The newly announced 93 billion peso commitment is a dedicated, multi-year plan for the petrochemical and fertilizer segment, extending through 2030. The flagship project is the construction of an ammonia and urea plant in Poza Rica, Veracruz, with an investment of 25 billion pesos (approximately $1.34 billion), expected to produce 708,000 metric tons of granular urea annually. This facility is being developed at the Escolín petrochemical complex, executed in collaboration between PEMEX Industrial Transformation and the Portuguese construction company Mota-Engil, and has been progressing since 2025.
Another 11 billion pesos (approximately $592 million) in dedicated funds will be used to rehabilitate multiple plants at the Cangrejera complex. Other parts of the plan focus on additional petrochemical capacity, with one set of projects expected to yield an annual production of 520,000 metric tons and create thousands of direct and indirect jobs.
Mexican agriculture has long relied on imported fertilizers, primarily urea from the United States, Russia, and China. In 2025, Mexico's urea demand was approximately 1.6 million metric tons, with PEMEX supplying only 19%. By 2029, when demand is projected to reach 1.97 million metric tons, PEMEX aims to produce enough urea to meet 84% of domestic needs, with the Escolín processing center alone contributing 750,000 metric tons. This dependency directly exposes the country to risks of geopolitical supply disruptions, exchange rate fluctuations, and strategic vulnerabilities that Energy Secretary González has consistently highlighted in the context of natural gas imports. The plan aligns with President Claudia Sheinbaum's push for energy and food self-sufficiency.
PEMEX reported a 21% increase in fertilizer production in 2025 and set a target of producing 558,000 metric tons of ammonia annually in 2026, a foundational compound for nitrogen-based fertilizers. The 93 billion peso plan aims to convert incremental gains into structural capacity to sustain domestic supply through 2030 and beyond. Under the "2025-2035 Strategic Plan," the ammonia production target for 2028 has been raised to 957,000 metric tons, implying a sustained doubling of current production levels and full execution of investment plans at Escolín and Cosoleacaque. However, analysts note that PEMEX's heavy debt burden and a history of delays and cost overruns on major projects pose challenges to delivering the plan on time and within budget. PEMEX reported a net loss of 46 billion pesos in the first quarter of 2026, and capital expenditures in early 2026 fell 51% year-on-year in real terms. Moody's estimates average annual funding needs of $14.9 billion between 2026 and 2028. The 93 billion pesos in funding is described as a combination of public and private capital, but the breakdown of contributions from each party has not yet been detailed. The Olmeca refinery, whose initial budget doubled and startup date was delayed by three years, serves as the most recent precedent for gauging execution confidence.
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