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Mexican regulator conditionally authorizes $8B Pemex refinery project

Mexico's Agencia de Seguridad, Energía y Ambiente, or ASEA, granted state-owned Petróleos Mexicanos SA de CV conditional authorization to go through with the construction of the $8 billion Dos Bocas refinery in the Mexican state of Tabasco, according to an Aug. 12 release.

In particular, the company, more commonly known as Pemex, must ensure local water quality and not divert or interrupt any body of water. To protect mangrove remnants, Pemex must also monitor mangrove exchange rates through Mexico's monitoring system of mangroves. The company will also present a program to supervise surface and underground water through the project's life cycle and apply rescue and relocation programs for local plants and animals.

In addition, Pemex will have to present a Monitoring Program for Variables of Climate Change Vulnerability to the agency to identify areas, facilities or equipment vulnerable to extreme hydrometeorological phenomena as well as phenomena derived from climate change.

The $8 billion Dos Bocas refinery is expected to process 340,000 barrels per day of Mexico's Maya heavy crude and is expected to be completed in 2022.