BY CONTINUING TO USE THIS SITE, YOU ARE AGREEING TO OUR USE OF COOKIES. REVIEW OUR
COOKIE NOTICE

Register with us today

and in less than 60 seconds continue your access to:Latest news headlinesAnalytical topics and featuresCommodities videos, podcast & blogsSample market prices & dataSpecial reportsSubscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Please Note: Platts Market Center subscribers can only reset passwords via the Platts Market Center

Enter your Email ID below and we will send you an email with your password.


  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you your password for security reasons. Please contact the Client Services team.

If you are a Platts Market Center subscriber, to reset your password go to the Platts Market Center to reset your password.

In this list
Oil

CERAWeek: Mexico to develop new catalytic units ahead of IMO 2020: Secretary Nahle

Oil

Will Venezuela’s oil sector ever recover?

Marine Fuels

Platts Bunkerwire

Natural Gas | Oil | Refined Products | Shipping | Marine Fuels | Tankers

Bunker and Residual Fuel Conference, 16th Annual

Oil

Canada crude-by-rail exports fall to 325,499 b/d in Jan, first dip since Feb

CERAWeek: Mexico to develop new catalytic units ahead of IMO 2020: Secretary Nahle

Highlights

A free fuel market will help Mexico to have low prices

Pemex will refine 1.12 million b/d next year

Houston — The Mexican government is planning to build new catalytic units at Pemex's refineries to overcome changes in international marine fuel market next year, Energy Secretary Rocio Nahle said Wednesday.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

The Mexican Petroleum Institute is developing catalytic units to enhance Pemex's existing refining plants to lower sulfur contents in its refined products, Nahle said while answering a question from S&P Global Platts in a press conference at the sideline of CERAWeek by IHS Markit.

In 2020, the International Maritime Organization's will start cutting emissions limits in bunker fuel to 0.5%S from 3.5%S, which will be problematic for Pemex which produces high levels of high sulfur fuel oil.

Currently, 30% of total Mexican refining output is high sulfur fuel oil, which reached 160,000 b/d in the last week of February. This is mainly a challenge for Pemex's 220,000 b/d Salamanca, 315,000 b/d Tula and 330,000 b/d Salina Cruz refineries, which have a simple configuration that prevents them from efficiently processing domestic heavy Maya crude oil.

The Mexican government has been concerned with the country's high reliance on gasoline imports, which fulfills 80% of the country's demand, Nahle said. It is a priority for Mexico to increase refinery utilization as Pemex refineries operated under 40% of their capacity in 2018, she added.

Building bridges: Energy and commodities in the construction sector

S&P Global Platts explores some of the factors driving construction markets and how developments in commodities such as oil, gas and steel play a key role in determining whether projects get built, and how much they may cost to develop.

Download the report

NEW REFINERY TENDER RULES OUT NEXT WEEK

The secretary said that after maintenance is completed in refineries this year, they will be able to reach a utilization rate of 70%. "The orders of President Lopez Obrador is to increase fuel production across our six refineries and build a new one," she added.

Mexico has a total crude processing capacity of 1.6 million b/d across six refiners. At this utilization rate, Mexico would process 1.12 million b/d.

President Andres Manuel Lopez Obrador will probably announce next week the auction participation rules for the construction of the new 340,000 b/d Dos Bocas refinery, she added. Pemex previously said it expected to begin construction of this facility by the end of the year.

Increasing domestic refining utilization is also crucial to add value to Mexico's domestic crude oil production, Nahle said.

Mexico is going to keep the current market framework, which allows private participation in fuel imports and marketing.

"Having a free market will help us to have low fuel prices," she said.

However, the secretary said that there hadn't been a stable and competitive fuel market in Mexico, which reflected in the lack of fluctuation in domestic fuel prices along with international oil prices, she added.

"Mexico's energy sector is large, and there is enough space for everyone to grow," Nahle said.

-- Daniel Rodriguez, daniel.rodriguez@spglobal.com

-- Edited by Pankti Mehta, newsdesk@spglobal.com