En Español

Very usefull links


News links




Dow Jones

Oil price



Views and News





Mexico's main refineries down, quake, blackout, cripple refinery capacity

Cadereyta refinery latest casualty from spate of upsets. U.S. refiners exporting less gasoline after Hurricane Harvey

By Amy Stillman

Petroleumworld 09 18

Mexico's drivers may pay more for fuel after a power failure hit a second refinery the same week that the strongest earthquake in more than a century shut the nation's biggest plant.

Cadereyta, in the northern state of Nuevo Leon, may not be fully operational until Friday following a blackout in northern Mexico on September 10, according to a person with direct knowledge of the situation.

Natural disasters and maintenance curbed output from three of state-owned oil company Petroleos Mexicanos's six refineries, which account for 48 percent of capacity. That's forced Pemex to boost fuel imports at a time when refineries in the U.S., Mexico's biggest, nearest supplier, are making less fuel as they recover from Hurricane Harvey. Mexico processed processed the least amount of crude in July since December 1990.

Mexico was already “significantly shorter of gasoline” because of the outages at Salina Cruz and Madero, Facts Global Energy said in a research note . With shortages in the U.S. following Hurricane Harvey, Mexican demand “will increase the pressure on an already tight market.”

Running low

The Salina Cruz refinery in Oaxaca, Mexico's largest, which has been intermittently out of service since mid-June, was hit by last week's deadly earthquake and could take two to three weeks to be brought back online . Pemex has also said its Madero refinery in the state of Tamaulipas is undergoing major maintenance work and will not return to normal operations until the end of December.

The 275,000 barrel-a-day Cadereyta refinery lost power for several hours on Sunday and some units were knocked offline. Many of the refinery's units are still restarting, including a fluid catalytic cracking unit known as FCC-2 that is undergoing weeklong  maintenance , the person said late Wednesday.

Cadereyta continues to operate, according to a Pemex spokeswoman who asked not to be identified, citing company policy. She wouldn't specify at what capacity. The fluid catalytic cracker at Mexico's northernmost refinery was already undergoing maintenance before the blackout occurred, she said.

Hurricane Harvey shut more than 20 percent of U.S. refining capacity at one point, forcing Mexico to import fuel from Europe and Asia to make up the difference. At least 17 tankers have been chartered to load fuel through early October in countries outside the U.S. for delivery to Mexico, according to ship fixture date compiled by Bloomberg.

We invite all our readers to share with us
their views and comments about this article.

Write to editor@petroleumworld.com

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels



Nov 13-14 ;
Mexico City, Mexico





Contact: editor@petroleumworld.com,

Editor & Publisher:Elio Ohep/
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2016, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2017, Petroleumworld ™  / Elio Ohep - All rights reservedThis site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.