Mexico’s Tamaulipas drought hits some chemicals producers as water supply halved

Tamaulipas is home to a petrochemicals hub in Altamira, near Tampico, one of the largest cities in the 3.5-million people state.

Some companies have said they are not affected by the restrictions. Others, however, have declared force majeure due to the drought.

A spokesperson at Mexico’s chemicals major Orbia said that the company had not been affected by the measure yet.

However, a source at the company, another large Mexican chemicals producer with operations at the Altamira hub, said that its operations had so far not been affected either.

Meanwhile, INEOS Styrolution declared force majeure from its facilities in Altamira on 20 May on the back of the water restrictions imposed by the authorities.

Tamaulipas, in Mexico’s east coast, is an industrial export-intensive state bordering the US; any reduction in operations due to water shortages could mean a large financial hit to companies.

The state of Tamaulipas department for hydraulic services said on 20 May it would prioritize human water consumption and, as well as halving water supply to industry, banned swimming pools or any other commercial operations from using water.

Meanwhile, Mexico’s electricity grid operator Cenace issued on 16 May a nationwide alert for high temperatures of up to 45°C (113°F) which could cause supply disruption.

Cenace’s executive Mauricio Cuellar Ahumada, said that according to the regulation Mexico’s electricity system must have a 6% minimum reserve so it is able to address sudden increases in demand.

“It is important to highlight that the operational measures [national alert] determined by Cenace are carried out to achieve a balance between demand and generation, as well as to avoid negative impacts on the system,” said the grid operator.