LONDON Mexico state-owned oil and gas producer Petróleos Mexicanos SA de CV (Pemex) has signed a six-year cooperation deal with steel organization Canacero that encourages local procurement of the product.
The deal was signed by Alonso Ancira Elizondo, president of Canacero and chairman of Mexican integrated steelmaker Altos Hornos de México (Ahmsa), and Pemex director general Emilio Lozoya Austin.
This could mean $2.4 billion per year (to the Mexican steel industry) Elizondo said last week on the sidelines of the 3rd Mexican Iron and Steel Conference in Mexico City.
Pemex plans to buy the steel for pipelines, oil platforms and sea vessels, he said. With this agreement, we will stop imports of about 700,000 tonnes of steel products per year.
Pemex, the only organization in the country to develop and operate extractive energy resource projects, plans to invest $24 billion annually over the next six years in different sectors, according to Lozoya Austin.
About 10 to 20 percent of this will be spent on Mexican steel, Elizondo added.
Canacero, which couldnt be reached for further comment, said on its website that members will have access to forecasts from Pemex in order to identify growth areas and will be considered by the oil and gas producer when making procurement decisions.
At the same time, the steel body will inform Pemex of the domestic availability and quality of products, and domestic and global pricing trends to assist in procurement decisions.
Mexican President Enrique Peña Nieto recently introduced legislation that could spur private sector investments in the nations oil and gas sector (amm.com, Aug. 21
). Rodrigo Alonso, Mexico City, contributed to this story.