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Chinese Banks financing oil refinery at Mexican port

Reuters, January 13, 2020

The Dos Bocas refinery will help Mexico wean itself off its growing reliance on fuel imports, the vast majority of which comes from U.S. refiners.

MEXICO CITY, Jan 13 (Reuters) – Chinese banks are providing $600 million in financing for the construction of a new oil refinery at the Mexican port of Dos Bocas in the southeastern state of Tabasco, China’s ambassador to Mexico said on Monday.

Map of the United States and Mexico highlighting the location of the Port of Dos Bocas and its connections to other US Gulf ports
Image: Port of Dos Bocas

Ambassador Zhu Qingqiao told reporters that Industrial and Commercial Bank of China (ICBC) and Bank of China were participating in financing for the refinery, one of President Andres Manuel Lopez Obrador’s flagship infrastructure projects.

It was unclear what kind of financing the banks would provide for the project, which the government says will be built for $8 billion. That price tag has been questioned as too optimistic by critics of the project.

A spokesman for Mexico’s energy ministry said funds for the project would come from the federal government.

Lopez Obrador has said the Dos Bocas refinery will help Mexico wean itself off its growing reliance on fuel imports, the vast majority of which come from U.S. refiners.

(Reporting by Sharay Angulo and Ana Isabel Martinez; Editing by Chris Reese and Richard Chang)

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