Page 194 - ΝΑΥΤΙΚΑ ΧΡΟΝΙΚΑ - ΜΑΙΟΣ 2023

COMMODITIES

be sold at lower prices on the international mar- been replaced by recent field developments in
kets, improving the factors that create demand other sections of the Sureste Basin, such as the
and supply equilibrium while limiting Moscow’s 133,000 b/d from the Quesqui field in 2022.
revenues. Historically, Mexico’s petroleum and liquid fuels
However, the latest estimates on Russian Urals’ production outpaced its domestic use, making
prices exceed, in some cases, $60/barrel, thus Mexico a net exporter of petroleum and liquid
placing them in a grey zone. In this context, a fuels. However, when Mexico’s output declined
recent report by Gibson Shipbrokers examines to 1.9 million b/d in 2019, consumption exceeded
the possibility that this development will dis- production for the first time. Mexico was a net
courage the transport of Russian oil. After all, importer for only one year because of a sharp
if prices exceed the threshold, ships –and, by decrease in petroleum consumption in 2020. In
extension, companies– carrying Russian energy 2022, the post-pandemic economic recovery led
goods can be considered to be in breach of consumption and production to each end of the
the sanctions imposed. At the moment, however, year at about 1.9 million b/d, according to our
the number of ships carrying Russian oil does not STEO.
seem to be decreasing, but on the contrary, they Woodside Energy, an Australian firm, has commit-
are increasing. ted to producing Mexico’s first deepwater oil in
At the same time, the price rise is a concern for the Trion field. The Gulf of Mexico could provide
ships carrying Russian oil companies offering significant potential for deepwater production if
insurance and other services to those ships, and Mexico’s large offshore shallow-water production
even companies that provide oil transportation in the Gulf of Mexico is any indication of its deep-
through pipelines. sea reserves. The Mexican government has plans
In this context, the US Treasury Department has to capitalise on deep-sea reserves, and future
issued a warning to US companies, noting that development plans make additional growth in
they may unknowingly have provided services to private investment likely.
transport Russian oil not sold within the limits
of the cap. Reuters reports that fines cannot be LIQUEFIED NATURAL GAS (LNG)
ruled out if companies fail to take appropriate
action. Sinopec to join Qatar’s mega-project
China Petroleum & Chemical Corporation signed
Output in Mexico stabilises after years of an equity participation agreement with QatarEn-
decline ergy on 12 April to take 1.25 per cent shares in
After nearly two decades of steady decline, Mex- Qatar’s North Field East (NFE) expansion proj-
ico’s petroleum and liquid fuels production has ect, currently the largest Liquefied Natural Gas
remained stable since 2019. As the US Energy (LNG) project in the world.
Information Administration (EIA) forecasts, The event marks another milestone after Sino-
production in Mexico will remain relatively flat pec and QatarEnergy inked a 27-year long-term
through 2024. Private companies have increased LNG purchase and sales agreement in November
petroleum production in Mexico over the past 2022 for the annual supply of 4 million tons of
five years. In 2022, Mexican government data LNG to Sinopec and achieved integrated coop-
show that private production contributed more eration on the NFE expansion project.
than 5% of Mexico’s total, a large increase from Sinopec Chairman Yongsheng Ma and Qatari
the 0.5% oil contribution that private companies Minister of State for Energy Affairs, President and
produced in 2016. CEO of QatarEnergy, H.E. Saad Sherida Al-Kaabi,
Mexico’s petroleum and liquid fuels produc- formally signed the agreement at a signing cer-
tion peaked at 3.9 million barrels per day (b/d) emony in QatarEnergy’s headquarters in Doha.
in 2004 and decreased yearly until 2019 when “QatarEnergy, a world-leading LNG producer,
production stabilised around 1.9 million b/d. is one of Sinopec’s most important partners;
According to EIA’s Short-Term Energy Outlook the cooperation between the two companies
(STEO), petroleum and liquid fuels production will further optimise China’s energy consump-
in Mexico is expected to remain at about 1.9 tion pattern and improve the security, stability,
million b/d through to the end of 2024. Several and reliability of clean energy supply. With the
dynamics have led to production stability. For solid foundation of our partnership, we hope to
example, decreasing production of the histori- explore new LNG collaboration opportunities
cally top-producing shallow-water fields of the and expand new grounds for cooperation to
Sureste Basin (formerly known as the Campeche achieve mutual benefit and win-win progress,”
Basin) on the south-eastern coast of Mexico has said Ma.

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