Mexico leans on private imports in fuels crisis
State-owned Pemex and private-sector companies have increased the rate of gasoline imports into Mexico by a combined 36pc in January according to government data released to rebut claims of import cuts amid fuel shortages.
Fuel shortages began in late December in central and western Mexico following the government's decision to fight fuel theft by shutting down pipelines subject to repeated illegal taps and shifting fuel delivery to tank trucks.
President Andres Manuel Lopez Obrador has promised to wean Mexico off of its dependence on imported fuels in the long term, but has now called on the private sector to help with both fuel distribution and imports.
According to energy ministry (Sener) data disclosed for the first time Glencore was the largest gasoline importer in the first nine days of January with 18,500 b/d. ExxonMobil was second with 12,800 b/d and Windstar third with 9,800 b/d.
The private companies combined imported 49,700 b/d of gasoline, up by 19pc from the 41,900 b/d average rate in December.
Imports represented 78pc of the 788,000 b/d of gasoline consumed from January to October 2018 in Mexico. The portion of demand covered by imports might be even higher this month as Mexican refineries have been operating at lower than normal levels.
Pemex still brings in 94pc of the imported gasoline, with 764,800 b/d, up by 37pc from 559,000 b/d in December.
No values were disclosed for diesel or other fuels by the ministry. Its recently launched website with preliminary weekly data on fuel movements has been shut since 11 January. The shuttering of the site, estadisticashidrocarburos.gob.mx, during the height of the crisis was raised at a hearing in congress where Pemex's chief executive and the energy minister had been summoned but did not appear.
Glencore's imports showed the biggest jump following no imported volumes in December. The company started operations at its 600,000 bl Dos Bocas terminal in late August.
The rate of ExxonMobil's gasoline imports are down by 32pc from the average December rate to 12,800 b/d. The company's private rail and truck network has helped the company's Mobil-branded retail station avoid some of the fuel shortage in the rest of the country.
The third-largest importer, El Paso, Texas-based WindStar increased its gasoline imports by 27pc to 9,800 b/d in the first days of January.
Windstar's chief financial officer Reynold Gonzalez told Argus most of its imports went to Philips 66-branded stations in the north of the country, but an undisclosed volume went to other resellers in Mexico.
Marathon's subsidiary in Mexico, Tesoro, reduced its gasoline import rate by 73pc to 2,900 b/d. The company won the only successfully awarded open season of state-run Pemex.
Other international companies that are on the list of gasoline importers include Novum Energy, with 1,400 b/d, and Vitol with 200 b/d during both the first days of January and all of December.
Mexican private importers included retail group Combustibles de Oriente with 1,700 b/d as it has one of the few private fuel storage terminals in the state in Tamaulipas.
Mexican retail fuel station owners or retailers Impulsora de Productos Sustentables, Karzo, PetroTamps and Energeticos San Roberto all imported less than 1,000 b/d total.
Mexico's gasoline imports | '000 b/d | ||
Company | 18 Dec | 19 Jan* | ±% |
Pemex | 559.0 | 764.8 | +36.8 |
Glencore | - | 18.5 | - |
ExxonMobil | 18.8 | 12.8 | -31.9 |
Windstar | 7.7 | 9.8 | +27.3 |
Tesoro (Marathon) | 10.7 | 2.9 | -72.9 |
Combustibles de Oriente | 0.9 | 1.7 | +88.9 |
Novum | 1.7 | 1.4 | -17.6 |
Impulsora de Productos Sustentables | 0.1 | 0.9 | +800.0 |
Distribuidora de Combustibles Karzo | 0.5 | 0.4 | -20.0 |
Vitol | 0.2 | 0.2 | - |
Grupo Petrotamps | 0.0 | 0.2 | - |
Energeticos San Roberto | 0.0 | 0.1 | - |
Others | 1.3 | 0.8 | -38.5 |
Total | 600.9 | 814.5 | +35.5 |
— Finance ministry, energy ministry | |||
*import rate for the first nine days of January |
Related news posts
US court asked for third Citgo auction extension
US court asked for third Citgo auction extension
Houston, 19 September (Argus) — The court-appointed special master overseeing the auction of US refiner Citgo has asked the court to delay the announcement of a successful bidder to 26 September and a sale hearing to December. Special master Robert Pincus planned to make an announcement of the proposed buyer on or about 16 September followed by a November sale hearing, but last minute legal challenges derailed what have otherwise been "robust negotiations with a bidder," according to a court filing today. "The special master is continuing to negotiate sale documentation with a bidder," today's motion said. Pincus previously requested a second extension in August and a first extension in late July . By Nathan Risser Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Citgo auction result delayed amid last-minute motions
Citgo auction result delayed amid last-minute motions
Houston, 18 September (Argus) — The US court-appointed special master overseeing the auction of US refiner Citgo plans to object to a last-minute motion from the Venezuelan government to delay the sale process by four months. The Republic of Venezuela and state-owned oil company PdV filed a motion on Tuesday seeking a four-month pause in the sale of its refining subsidiary Citgo, which is being auctioned off to satisfy debts owed by PdV. Special master Robert Pincus said in a court filing today that he intends to object to Venezuela's motion for a pause. The last-minute motion from Venezuela comes days after the US District Court for the District of Delaware was expected to announce results of the winning bidder. The court asked for a second extension to the auction process in August, delaying announcing a successful bidder to on or about 16 September with a sale hearing on 7 November. But Pincus is now dealing with last-minute legal challenges filed last week outside of the Delaware courts by so-called "alter ego" claimants seeking to "circumvent" the Delaware court's sales process and "jump the line" for enforcing claims against PdV, the special master said in a filing last week. Bidders for Citgo's 804,000 b/d of refining capacity, terminals, retail fuel stations and other plants expect the assets to be sold free and clear of future claims by PdV creditors. Unresolved legal liabilities could lower the value bidders are willing to pay for Citgo, decreasing the pool of money available to those owed by PdV. By Nathan Risser Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Advanced Fame marine biodiesel blends hit 9-month low
Advanced Fame marine biodiesel blends hit 9-month low
London, 18 September (Argus) — Some marine biodiesel blend prices in northwest Europe hit a year-to-date low on 17 September, owing to soft fundamentals and easing values in underlying markets. Argus assessed the prices of B30 and B100 Advanced fatty acid methyl ester (Fame) 0 dob ARA — which include a deduction of the value of Dutch renewable fuel tickets (HBE-G) — at $674.01/t and $993.87/t, respectively. At these levels, the two blends were at their lowest outright price since 29 December last year — right before values rose sharply following the halving of the Dutch HBE-G multiplier for maritime blending at the start of the year. Prices have slipped on the back lacklustre demand for marine biodiesel blends in recent months. The price of EU Emissions Trading System (ETS) allowances, for which Advanced Fame marine biodiesel blends receive a zero emission factor, have averaged $70.56/t so far this year, compared with $93.43/t in the same period last year. Consequently, the expansion of EU ETS into the shipping sector has done little to financially incentivise the uptake of marine biodiesel blends this year. On the other hand, voluntary demand for marine biodiesel blends has been steady from shipowners seeking to deliver proof of sustainability (PoS) documentation to their customers to offset the latter's scope 3 emissions. But this may have shifted geographically in recent months in favour of Singapore over ARA. Soft fundamentals in the marine biodiesel blend market has been compounded by pressure on prices in underlying crude and biodiesel markets. The front-month Ice Brent crude futures and gasoil futures contracts hit a near three-year low at 16:30 BST on 10 September. This in turn weighed on values of very-low sulphur fuel oil (VLSFO) and marine gasoil (MGO), and the former makes up 70pc of the B30 Advanced Fame dob ARA blend. VLSFO dob ARA prices have averaged $505.58/t so far in September, compared with $533.38/t on 1-18 August, having hit $483/t on 10 September, the lowest level since August 2021. Meanwhile, in the underlying biodiesel market, Advanced Fame 0 fob ARA prices were at the second-lowest level on record on 17 September, with the price marked at parity to used cooking oil methyl ester (Ucome) for the first time. Several market participants have said that low prices for German greenhouse gas (GHG) quota tickets, which can be traded on the market to meet the country's emissions reduction mandate, have discouraged buyers from physically blending advanced biodiesel, as tickets are a cheaper option. The current year GHG other ticket price hit a new historic low of $85/t CO2 equivalent (CO2e) on 13 September, down by $115/t compared with the same time last year and by $378/t compared with two years ago. Provisional EU anti-dumping duties on Chinese-origin biodiesel that came into force on 16 August have also turned European buyers away from advanced product made in China, which used to be one of the main sources of advanced biodiesel in Europe. By Hussein Al-Khalisy and Simone Burgin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
USCG updates ongoing lower Mississippi restrictions
USCG updates ongoing lower Mississippi restrictions
Houston, 17 September (Argus) — The US Coast Guard (USCG) will further limit northbound movement for barges transiting the lower Mississippi River despite slightly higher water levels following Hurricane Francine's landfall late last week. The USCG announced on 16 September that all northbound traffic traveling from Tunica, Mississippi, to Tiptonville, Tennessee, can only have five barges wide and only four of those can be loaded. Barges also cannot be loaded deeper than 9.5ft. Any southbound traffic from Vicksburg, Mississippi, to Tunica cannot move more than seven barges wide or be drafted deeper than 10.5ft. Southbound traffic from Tiptonville to Tunica can only be six barges wide or less and cannot have a draft greater than 10ft. The USCG has updated lower Mississippi river draft restrictions about four times since the end of August, but this is the third year in a row of notable low water for the fall on the lower Mississippi river which has triggered draft restrictions to arrive more quickly than previous years. Hurricane Francine brought significant rainfall to the lower Mississippi at the end of last week . But this has not eased the minds of mariners, who anticipate the water may leave as quickly as it arrived. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Business intelligence reports
Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.
Learn more