Pemex Etileno, a subsidiary company of Petróleos Mexicanos, successfully concluded the e-auction to adjudicate quantities of ethylene oxide, which is an essential product for the chemical industry, as it is a part of the value chain of end products such as plastics, pharmaceuticals and anti-freeze products, among others.
This gas is difficult to transport due to its explosion hazard, and its current production capacity is lower than its demand.
The online bidding process, in which the 10 companies using this product participated, stood out because of its transparency and competition. As a result of the auction, 100% of the available volume available was placed at a market price that balanced both offer and demand and was higher than the historical price.
This fact marks a milestone in the national petrochemical industry, as it leaves behind the inert practice of Pemex both assigning the volume and setting the prices. This will allow for the promotion of competition and strengthening the market.
So, it will be the market, not Pemex, who will decide the final sales price. This procedure aligns with the best practices in international competition and allows for the exploration of alternatives to increase availability and supply of ethylene oxide to the industry in the country. Thus, Petróleos Mexicanos complies with its mandate of profitability, by guaranteeing a price that is adjusted to market conditions.