Sheinbaum says Mexico will increase production of fertilizers, petrochemicals

Mexican President Claudia Sheinbaum said the country will increase its production of fertilizers and petrochemicals.

Speaking on Tuesday at her daily press conference in Mexico City, Sheinbaum praised a US$1.2bn fertilizer project in Veracruz state being developed by national oil company Pemex.  

The plant, which is being constructed by Portugal's Mota-Engil, will produce more than 700,000t/y of ammonia and urea.

"It’s a very good project which increases the production of fertilizers," Sheinbaum said. "We will continue to strengthen both petrochemical and fertilizer production."

Sheinbaum, who assumed power on October 1, said Mexico’s fertilizer production slumped when the sector was privatized and only began to increase thanks to her predecessor Andrés Manuel López Obrador (2018-2024).

"The privatization of fertilizers is one of those terrible examples of privatization in our country," she said. "The production of fertilizers was privatized and a few years later fertilizer output disappeared."

Analysts have said that to raise its output of fertilizers and petrochemicals and decrease imports, Mexico needs to increase its production of natural gas, the industry's main feedstock. 

Mexico's natural gas output has declined dramatically in recent years and the country imports 70% of its gas from the US.