Mexico cuts petchems crude runs, helps oil exports

MEXICO CITY May 4 (Reuters) - Mexico has slashed the processing of crude oil at a major petrochemicals installation which has allowed state oil monopoly Pemex to divert supplies to export markets, company officials said on Tuesday.

State oil monopoly Pemex reported its petrochemicals output declined 6.7 percent in the first quarter due in part to lower production at its La Cangrejera plant due to a shift to processing imported naphtha there in place of crude oil.

Pemex processed more than 130,000 barrels per day of crude oil at La Cangrejera for most months of 2009, according to government data. The company has not run crude through the petrochemicals facility since October.

The diversion of crude oil to export clients has allowed Pemex to support its export volumes even as oil production has declined over the last year.

Pemex exported 1.271 million bpd in the first quarter of 2010, little changed from 1.291 million bpd a year earlier.

The company began importing naphtha for processing at La Cangrejera in January after completing an overhaul of its installations designed to allow it to process naphtha in place of crude oil.

Pemex expects to save $120 million annually due to the shift. (Reporting by Robert Campbell; Editing by David Gregorio)