(S&P Global Platts, Daniel Rodriguez, 27.Sep.2018) — Pemex plans to begin importing light crude from the US Gulf Coast in the second half of October, CEO Carlos Trevino told S&P Global Platts.
The imports will enable Pemex to raise its total crude processing to 700,000 b/d-800,000 b/d in the final months of 2018, he said on the sidelines of the Mexican Petroleum Congress in Acapulco Wednesday.
A “question many people ask me is, ‘will this benefit us?’ The definite answer is yes,” Trevino said, adding that the measure will allow Pemex to improve its crude processing and marketing margins.
Trevino did not specify the volume or the terms of the purchase, saying it was competitive, private information. He added that the incoming administration has to decide whether the strategy would continue.
It will enable Mexico’s 330,000 b/d Salina Cruz refinery to raise its operational levels by 100,000 b/d. The refinery lacks coking capacity, preventing it from processing Mexican Maya heavy crude blend at a positive margin, Trevino added.
“We are going to empower Salina Cruz as it is the refinery where we can boost crude processing levels the most,” Trevino told reporters on Thursday at a press conference.
Salina Cruz processed 150,550 b/d in August, compared with a 2018 monthly peak of 236,700 b/d in April and an average of 269,000 b/d for the full-year 2014.
Trevino also told reporters the imports could be used to enhance operations at its other two refineries designed to process light oil: the 315,000 b/d Tula and 220,000 b/d Salamanca facilities.
The optimal and profitable operation of these facilities has been affected by light crude shortages. Tula processed 132,200 b/d and Salamanca 158,320 b/d in August.
Pemex’s light crude production has been skidding lower for some time. Its light crude output was 759,250 b/d in August, down from 861,160 b/d in January and 1.16 million b/d in 2014.
The slide has steepened this year because of seawater invading its Xanab shallow water field in on the Tabasco coastline.
Xanab’s production has been in freefall since January, decreasing its output by 68,200 b/d to 104,400 b/d in August. Pemex produced 1.81 million b/d in August, down from 1.93 million b/d in January.
Trevino said the company is doing its best to solve the “premature” water invasion at Xanab as fast as possible.
In August, the company processed 404,300 b/d of light crude, 60% of its overall slate, compared with 455,800 b/d in 2017 and 651,000 b/d in 2014.
The company is focusing on profitability rather than refining fuel at any cost. For the first time in decades, Pemex’s refining unit posted positive results in 2017, although this led to lower crude processing.
Pemex’s downstream director, Carlos Murrieta, previously told Platts the company has been weighing the costs of importing fuel against refining it domestically.
Murrieta also said the company is going to evaluate the differentials between light and heavy crude oil to decide how much sweet crude it could import.
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