Mexico concludes expropriation of Air Liquide hydrogen facility

The government of Mexican President Andrés Manuel López Obrador concluded the expropriation of French firm Air Liquide’s hydrogen production plant at the Tula oil refinery in Hidalgo state. 

The completion of the process was announced by the energy ministry in a decree published Thursday in the official gazette and follows the publication of another decree in January ordering the temporary seizure of the facility. 

In a similar situation in May 2023, López Obrador ordered the navy ministry to take over three rail stretches of operator Ferrosur's concession in the Tehuantepec isthmus in Oaxaca and Veracruz states.

State-owned oil and gas company Pemex will operate the Air Liquide facility to “produce fuels such as gasoline and diesel with low sulfur content,” the decree states. 

Details of compensation to be paid are still unclear but talks between the company and the government began in February. The decree says the firm can still appeal the decision in court.  

The Air Liquide facility started operations in 2011, according to the company's website. Previous president Enrique Peña Nieto's administration signed a 20-year supply deal with Air Liquide in 2017 and it has been providing hydrogen to the refinery since then.