En Español

Very usefull links


News links




Dow Jones

Oil price



Views and News





Pemex refineries ramp up reducing fuel imports with less crude for export

Output increases as maintenance ends, pump prices rise. Mexico's crude processing nears 1 million barrels a day

Petroleumworld 05 04 2017

Pemex is producing more gasoline and diesel at its six refineries across Mexico, reducing fuel imports and leaving less oil available for export.

In the first three months of the year, Mexico's refineries processed 21 percent more crude than a year earlier, according to a company presentation . The increase has largely come from crude that was previously being sent to Asia and the U.S. According to government data, exports of Isthmus medium crude fell 57 percent over the period, while total crude exports were down 3.6 percent.

“Isthmus exports have fallen and that trend should continue if Pemex's rise in utilization rates is maintained,” said Ixchel Castro, senior analyst at energy consultant Wood Mackenzie in Mexico City. “We can still expect shipments to Asia and the U.S. but at volumes much lower than what we saw the second half of last year.”

After Pemex's fuel output sank in 2016 to the lowest level in 26 years, the company pledged to invest more in its refineries this year. Crude processing has rebounded following the completion of maintenance at the end of 2016 and the recovery of prices for refined products, Pemex said in a presentation on its website .

Higher Prices

The state-owned oil company has benefited from the government's change in policy to bring fuel prices in line with international rates. The new policy, which became known as the “gasolinazo,” or fuel price slam, pushed up pump prices by as much as 20 percent at the start of the year and led to riots and blockades at some fuel terminals.

The country's refineries processed almost 950,000 barrels a day in the first quarter of 2017, and Pemex has pledged to raise output to about 1.1 million barrels a day by April. Gasoline imports, which fell 11 percent from the previous quarter, were up 23 percent from a year ago. U.S. refiners such as Valero Energy Corp. and Phillips 66 are looking to export more fuel to Mexico and the rest of Latin America as domestic consumption levels off.

Pemex aims to further increase gasoline and diesel production by seeking partners for its refinery projects, including a coker at the Tula refinery in Hidalgo state. “We expect to have a partner toward the end of the year, hopefully in the next three to four months,” said Carlos Murrieta, Pemex refining head, on a Wednesday call with investors.

Story by Amy Stillman from Bloomberg.

bloomberg 05 03 2017

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

Offshore Technology Conference

May 1-4, NRG Park
Houston, Texas, USA










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.