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Mexico orders seizure of H2 plant at Pemex oil refinery

According to Reuters, Mexico's government has ordered the expropriation of a H2 plant at a Pemex oil refinery that was sold to French company Air Liquide during the previous administration, after officials ordered a temporary occupation of the facility last December.

Oil refineries use H2 to reduce the sulfur content in petroleum products, especially diesel. The government's announcement also cited the need to ensure Mexico's "energy sovereignty" via the expropriation of the privately-operated facility.

Under his predecessor, centrist former President Enrique Pena Nieto, Pemex's refining arm signed a 20-year contract with Air Liquide in 2017 to supply H2 for Tula's operations in a bid to lower costs and boost efficiency.

The Tula facility, located in central Hidalgo state north of the Mexican capital, is Pemex's second-largest refinery currently in operation.

Source: Reuters