Pemex Looks to Improve Diesel Production

Instant Max AI

(Pemex, 14.Aug.2015) – The exchange of light crude between the U.S. and Mexico will improve the production of diesel and gasoline in the country.

Pemex has been notified of the approval of the application submitted to the Bureau of Industry and Security, Department of Commerce of the United States, earlier this year for a proposed exchange of crude oil, in order to import up to 100 Mb/d of light crude and condensates that will prove highly beneficial to the country since it will allow Pemex to mix them with local heavy petroleum and improve the process of fuel production in the Salamanca, Tula and Salina Cruz refineries.

Mexico produces mostly heavy crude oil, while the refineries mentioned above are configured to process light crude. This affects the industrial performance of these refineries, leaving Pemex with a high residual of fuel oil that is difficult to place at a good price in the international market and its consumption in domestic power plants is poorly competitive and inconvenient for the environment.

With the availability of light crude from the U.S., Mexico will be benefited, since Pemex will make mixtures of light and heavy oils which will result in increased production of gasoline and diesel, less volume of fuel oil, and will have better quality fuels that will benefit the environment.

The oil agreement will exploit logistical synergies which will reduce the transportation costs of raw materials.

Pemex will continue exporting oil to the U.S. for processing in US refineries that specialize in heavy crude, such as the one mostly produced by Mexico. In the first 7-months of 2015, total exports to various countries was 1.164 MMb/d, including just over 700 Mb/d to the U.S.

This exchange of crudes will strengthen trade relations between Mexico and the United States.

***

Previous post Pacific Rubiales Changes Name To Pacific E&P Corp.
Next post Details Related to Petrobras Distribuidora IPO

Leave a Reply

Your email address will not be published.