MEXICO CITY (Pakistan Point News / Sputnik - 14th January, 2020) Chinese banks will invest $600 million in construction of a new oil refinery at the Dos Bocas port of the southeastern Mexican state of Tabasco, Chinese Ambassador to Mexico Zhu Qingqiao said on Monday.
A flagship infrastructure project of Mexican President Andres Manuel Lopez Obrador, the new refinery in Dos Bocas will become the country's seventh one and part of the Petroleros Mexicanos (Pemex) state-owned company.
"Combined investments will total $600 million," the Chinese ambassador was quoted as saying by the Economista daily at the Mexican Energy Ministry on the occasion of China's national day.
The total costs of the refinery's construction, expected to be completed in 2022, are estimated at $8 billion. To meet the costs, the Mexican government plans to invest $4.3 billion from the country's 2020-2021 budget and waive over $6.7 billion in taxes. The refinery project has already accumulated about $100 billion in debts to foreign investors.
Hopes are that the plant will be producing up to 110,000 barrels of gasoline daily which is 20 percent of Mexico's current total import.
