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Pemex looks to phase in 6% ethanol in three major cities by 2012
MEXICO CITY
Petroleumworld.com, November 11, 2008Mexico's Pemex plans to phase in gasoline blended with 6% ethanol over the next four years in Guadalajara, Monterrey and Mexico City, a company official said Monday.
The company plans to phase out the use of MTBE as a gasoline oxygenate in those cities, Pemex's Rodrigo Fierro said at Platts' Mexican Energy Conference in Houston. The company plans to begin testing 6% ethanol fuel at two service stations and in a test fleet starting next month, Fierro said.
The company will purchase ethanol from sugar cane producers in Mexico. By the end of 2010, Pemex hopes to introduce 6% gasoline to the Guadalajara metropolitan area. Fierro said the company expects ethanol demand to average 52 million gal/year.
Pemex expects to spend about $15 million to $30 million to modify storage terminals in Guadalajara for ethanol storage and blending. Then, based on market evaluations and domestic availability, Pemex plans to introduce 6% ethanol-blended gasoline to Monterrey and Mexico City.
Depending on market conditions, that move could see Mexico's ethanol demand increase between 38 million and 180 million gallons/year. Fierro said that while the company initially expects to use 6% ethanol, it hopes to expand that demand in the future.
"We hope that in the long run we will be using at least 10% ethanol," he said. Fierro said there were numerous challenges facing the plan, including logistics, long-run profitability and environmental concerns. Additionally, Pemex is looking at testing the use of biodiesel as a lubricant additive to ultra-low sulfur diesel.
The company expects to begin testing biodiesel blends of 0.5% to 1% between 2008 and 2010.
Story by Matthew Cook from Platts
- matthew_cook@platts.com
Platts 10 11 08
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