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Mexico's short 3.5 million barrels of gasoline with Salina Cruz refinery down

Salina Cruz refinery to remain down until at least July 30. Pemex to seek 10 additional fuel shipments in the coming weeks

Petroleumworld 06 26 2017

Mexico's state-run oil refiner is looking for an extra 3.5 million barrels of gasoline to make up for a plant shut by a fire and flooding.

Petroleos Mexicanos will be seeking an additional 10 shipments of the fuel in the coming weeks to avoid supply shortages in south Mexico, according to a company statement. Tropical Storm Calvin flooded the Salina Cruz refinery in the southern Mexican state of Oaxaca a week ago, causing oil to spill and catch fire. The plant's been shut since June 15.

The closing, only the latest in a series of unplanned outages at Pemex's aging refineries in recent years, underscores how vulnerable Mexico is to fuel shortages. The country's refinery production may have dropped to as low as 40 percent of capacity this month due to the Salina Cruz repairs alone. The 330,000-barrel-a-day refinery accounts for more than one-fifth of national output.

Pemex said it expects the refinery to remain out of service until at least July 30 for cleaning, repairs and general maintenance. In May, Mexico's refineries were operating at 56 percent of capacity, data from the country's energy information agency show.

The U.S. could end up supplying much of Mexico's additional demand. America's refineries are running at full blast, topping out at 17.7 million barrels a day last month, according to the U.S. Energy Information Administration.

Story by Amy Stillman from Bloomberg.

06 23 2017

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