In a significant boost to Cuba's energy sector, Mexico is set to restart oil shipments to the island nation after a three-month pause. This development is expected to greatly alleviate power outages and fuel shortages that have been affecting the Cuban population.
Cuba has been facing routine blackouts due to challenges in securing crude oil and fuel from its primary suppliers. Mexico’s state oil company, Pemex, emerged as a new and vital supplier last year, enhancing the country's fuel security by sending light crude through a wholly-owned subsidiary utilizing Cuba’s tanker fleet.
This week, the Cuba-flagged tanker Vilma arrived at Mexico’s Pajaritos anchorage, ready to be loaded. Since beginning regular oil exports to Cuba last year, Mexico has provided an average of 21,000 barrels per day (bpd) of crude and liquefied petroleum gas (LPG). These shipments, valued at approximately $400 million in the latter half of last year, underscore Mexican President Andres Manuel Lopez Obrador's commitment to supporting Cuba amid what he describes as an "inhumane and unjust blockade" by the United States.
Meanwhile, Venezuela’s oil supply to Cuba has decreased, averaging 24,500 bpd in the first four months of this year compared to nearly 50,000 bpd in the same period in 2023. Cuban officials have noted that the resumption of Mexican oil shipments will help address fuel shortages, equipment malfunctions at outdated oil-fired plants, and improve the distribution of fuel to high-demand areas.
The nation's power grid, which has been struggling to meet demand, will benefit significantly from this renewed support. Cuba requires about 125,000 bpd of various fuels, including motor gasoline, diesel, and fuel oil for power generation, compared to a domestic oil output of about 40,000 bpd, highlighting the essential role of these imports.
The Cuban government points to U.S. sanctions and a severe economic crisis as contributing factors to the fuel shortages. However, the renewed partnership with Mexico promises a positive step towards stabilizing Cuba’s energy supply and supporting the well-being of its citizens.
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