Mexico's Sheinbaum foresees a cleaner Pemex with lower debt

A week after presenting her US$13.5bn electric power generation and transmission plan, Mexico’s presidential frontrunner Claudia Sheinbaum gave details of her vision for federal oil and gas company Pemex. 

During her participation at an event hosted by the Council of the Americas in Mexico City on Monday, the candidate from President Andrés Manuel López Obrador’s Morena party said the introduction of renewable sources into cogeneration is not only key for the company to align itself with climate change goals, but also to refinance its debt. 

Pemex’s debt is projected to reach US$94.5bn by the end of the year, down from US$106bn currently.

“We have a plan for Pemex, which is one of the issues that I know some of you have in mind, and it has to do with, obviously, the refinancing of the debt in the long term,” she said. 

Sheinbaum’s presentation, which the Council’s head Susan Segal described as “spectacular” during the event, can be seen here. 

Although the former Mexico City mayor said a 30-year plan for meeting international clean-energy commitments is still in the making, she cited the sustainability plan that the state-owned company unveiled at the end of March to reduce its greenhouse gas emissions by 54% in the next six years and achieve net zero by 2050, among other measures.  

“Not only oil and gas, which is essential, but also allowing it to enter other sources, renewable sources, cogeneration that also allows the refinancing of the debt,” Sheinbaum said. 

The plan follows the publication of a sustainable strategy with options created by Standard & Poor's as a measure to help Pemex improve its ESG image, particularly with the rating agencies. In the publication, the company included two business models based on green hydrogen as long-term options for sustainability, among other things. 

The presidential election is to be held June 2 and the winner takes office October 1.