Mexican soldiers die responding to fuel theft

  • : Oil products
  • 17/05/04

Four Mexican soldiers were killed and ten wounded in the state of Puebla in two incidents when soldiers responded to reports of thieves stealing fuel from pipelines.

The first incident took place in the village of Palmarito late yesterday evening when soldiers going to investigate a fuel theft report were attacked from a distance by individuals hiding behind a group of women and children, Mexico's ministry of defense said in a statement.

"Military personnel decided to not respond to the attack, given that the women and children were being used as human shields," the ministry said.

Two soldiers were killed and another was injured.

Another attack took place immediately after in the same area, when assailants in five trucks, including three that the ministry described as armored, shot at soldiers. Soldiers returned fire, but two more soldiers were killed and nine injured. Three of the attackers were killed and one was wounded, the ministry said.

Twelve of the attackers were arrested, including two minors.

Fuel theft is a massive problem in Mexico. In a March interview on a local radio show, Carlos Murrieta Cummings, head of Pemex's downstream division, estimated that the company had lost some 26,000 b/d throughout 2016 from fuel theft, leading to financial losses of about 30 billion pesos ($1bn).

Sources have told Argus that Pemex is likely under-estimating losses, which one energy official estimated would be closer to $1.4bn to $1.5bn/year.


Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

Brazil lowers biofuel mix in flooded state


24/05/06
24/05/06

Brazil lowers biofuel mix in flooded state

Sao Paulo, 6 May (Argus) — Brazil's oil regulator ANP temporarily decreased the mandatory mix of ethanol and biodiesel in fuels in Rio Grande do Sul state for 30 days, starting on 3 May, amid floods in the region. The anhydrous ethanol blend on gasoline was lowered to 21pc from the current 27pc, while the mandatory biodiesel mix for 10ppm (S10) diesel is now at 2pc, down from the usual 14pc. The agency also temporarily suspended the blending mandate for diesel with 500ppm of sulfur (S500). ANP said it can revise deadlines depending on supply conditions in the state. Rainfall in Rio Grande do Sul blocked railways and highways where biofuels are transported to retail hubs, such as Esteio and Canoas. Supply of fossil fuels via pipeline from the 201,000 b/d Alberto Pasqualini refinery (Refap), in Canoas, and other retail bases has not been compromised, ANP said. Floods in Rio Grande do Sul have left at least 83 dead and 111 missing, according to the state government. More than 23,000 people have been forced from of their homes amid widespread damage. Over 330 cities are in a situation of public calamity. By Laura Guedes Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

North Germany sees May holiday gasoline surge


24/05/06
24/05/06

North Germany sees May holiday gasoline surge

Hamburg, 6 May (Argus) — Driving activity in Germany increased around the public holiday on 1 May, leading to a rise in regional demand for fuels, particularly gasoline, in the past week. Oversupply of diesel is also pressuring premiums in Europe. Daily volumes of diesel and E5 gasoline reported to Argus this week were higher than the average for the current year. Demand for gasoline in the North region notably increased, with reported volumes in the past week reaching the highest daily average in 2024. The filling station sector is almost entirely responsible for the increased demand, market participants said. Many end-users took Monday and Tuesday off as additional holidays, leading up to 1 May. This resulted in a temporary increase in travel activity. In anticipation of this, filling station operators stocked up on fuel. But compared with previous years, overall demand for diesel in Germany remains weak. Coupled with plenty supply of diesel on the international market, this has led to premiums of cif Hamburg in April reaching their lowest level since July 2023. In the face of oversupply the difference between cif Hamburg diesel and cif ARA assessment fell further as well over the past week. The volume of diesel imported to northern Germany increased by 18pc in April compared with March, reaching around 71,000 b/d, data from Vortexa show. The low premiums of the diesel cif assessments, along with the ICE Gasoil Future's contango — which has encouraged the storage of product in tanks since mid-April — have particularly boosted import demand. By Johannes Guhlke Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Panama's new president faces copper, canal issues


24/05/06
24/05/06

Panama's new president faces copper, canal issues

Kingston, 6 May (Argus) — Stand-in candidate Jose Raul Mulino will take office on 1 July as president of Panama with a challenge to decide on the future of one of the biggest copper mines in the Americas. The 64 year-old lawyer won yesterday's presidential election in the central American country, promising a "pro-investment and pro-business" policy. He won with 35pc of the vote and an about 10 percentage point lead over his next closest rival, Ricardo Lombana. But he has delivered no comment on the future on the shuttered Canadian-owned copper facility that is one pillar of the country's economy. His government will use public works projects and incentives for foreign investors to restore economic growth, Molino said, without giving details. Panama also faces a crippling drought that has lowered water levels and reduced transit through the economically important Panama Canal. First Quantum intends to meet the new government to discuss reopening the mine, the company's chairman Robert Harding said in March. "Whatever government is elected, we will work with it," Harding said. "We would like to see this mine reopen." Panama closed the $10bn Cobre Panama mine after a supreme court ruling in November that First Quantum's contract was unconstitutional. The mine accounted for 5pc of the country's economy and 1.5pc of global copper output, according to the government. The shutdown will limit the country's economic growth to 2.5pc this year against 7.5pc in 2023, the IMF has forecast. The supreme court's order to close the mine followed weeks of protests over the terms given to First Quantum in October. Protests wracked the country as opposition parties, trade unions, environmental lobbies and non-governmental organizations objected to the terms. "Although the mine's owners would be happy to negotiate a reopening with the new administration, this is a very hot and controversial matter for the new government," a senior official of the outgoing government of President Laurentino Cortizo told Argus today. "Any suggestion of negotiating a reopening would again bring people on the streets." Mulino ran with former president Ricardo Martinelli until the courts disqualified Martinelli because of a money laundering conviction. Martinelli had proposed that Panama renegotiate the contract with First Quantum to secure higher royalties and a stake. "Mulino is a mentee of Martinelli, but I doubt he would stoke public anger by seeking to reopen the mine," the official said. Cobre Panama produced 331,000 t in 2023, 5pc less than 2022 output, First Quantum said. By Canute James Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Mexico's long refining quest tilts in its favour


24/05/06
24/05/06

Mexico's long refining quest tilts in its favour

Mexico City, 6 May (Argus) — Mexico's six-year campaign to boost refinery output and cut its dependence on US oil imports is starting to pay off, but time will tell if it can sustain the effort. State-owned Pemex's six domestic refineries processed more than 1mn b/d of crude in March for the first time in almost eight years, boosting its gasoline and diesel output by 32pc and cutting its imports by 25pc from a year earlier. Combined with Pemex's still declining crude production, this has pulled approximately 500,000 b/d of Mexican crude exports — mostly medium and heavy sour grades — from the market compared with a 2023 peak of 1.2mn b/d in June — equivalent to the loss of about 175,000 b/d on average this year compared with 2023. The government said earlier this year that it was not planning "significant" export cuts after cancelling some term contracts. But the drop in shipments combined with the eventual start of its long-delayed 340,000 b/d Olmeca refinery, possibly in 2025, has the potential to shift global flows. At least two independent US Gulf coast refiners are sceptical of major shifts. Road fuel demand is expected to exceed capacity additions in the coming years, Marathon Petroleum chief executive Michael Hennigan said recently. Valero, which is opening a marine storage terminal in Mexico, where about 250 retail outlets carry its brand, expects demand from Mexico to remain strong and grow, chief operating officer Gary Simmons said in its latest earnings call. The impact of Mexico's shift to greater self-sufficiency will depend heavily on its ability to sustain its long-promised refinery renaissance. Mexico's crude exports have already picked up in April from March, to roughly 660,000 b/d based on ship tracking data, although still about 125,000 b/d lower than a year earlier. Energy independence Pemex's refining rates started to fall in 2014 after the previous administration chose to rely less on domestic production and focus more on opening the energy market to outside investment. President Andres Manuel Lopez Obrador vowed to make Pemex great again and build a big refinery to reach "energy independence" when he took office in late 2018. Lopez Obrador poured at least $3.7bn into maintenance alone at Pemex's ageing refineries in 2019-23, excluding major projects including uncompleted ones to add cokers at two refineries that will cost $6bn-8bn and a spiralling $16bn-20bn for the Olmeca plant. It bought out Shell's share in the Deer Park refinery in Texas , taking full control of the plant in 2022. With presidential elections set for June, it was time to show results. But Pemex has a long history of high accident rates , making refinery operations unreliable. The next administration may have to sustain some of this spending and tackle Pemex's $101.5bn debt at a time of calls for structural reform. In addition, the 330,000 b/d Salina Cruz and 315,000 b/d Tula refineries — Mexico's largest — have long struggled with elevated high-sulphur fuel oil (HSFO) production that takes up valuable storage space and makes it hard to run both plants at high rates simultaneously. Record-high exports of HSFO in March helped and Pemex is building coking units at both refineries to solve this, but they are unlikely to both start until early 2025. Attention is on whether and when the Olmeca refinery will affect Mexican demand and offer balance more permanently. Pemex said it will start producing diesel in late May, but also does not expect more than 9,000 b/d of output of all fuels this year . The refinery has missed multiple deadlines, the latest in April. Olmeca's crude unit — the first processing unit — faces "major issues", a source familiar with Pemex refinery operations says. But others say secondary processing units are ready. Pemex refinery operating rates % Domestic refineries Mar 24 Feb 24 Tula 78 80 Salina Cruz 72 40 Madero 69 60 Salamanca 62 60 Cadereyta 58 60 Minatitlan 53 50 Pemex Pemex exports, imports ’000 b/d 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