06/21 Closing Prices / revised 06/21/2024 21:59 GMT |    06/20 OPEC Basket   $85.68  +$0.14 cents 06/21 Mexico Basket (MME)  $76.19  -$0.28  cents | 05/31 Venezuela Basket (Merey)  $70 45   -$4.36 cents | 06/21 NYMEX WTI Texas Intermediate July CLN24 $80.73  -$0.56 cents  | 06/21 ICE Brent August  BRNQ24 $85.24  -$0.47 cents  | 06/21 NYMEX Gasoline July RBN24 $2.51  +0.5%  |  06/21 NYMEX  Heating Oil July  RBN 24   $2.49  -1.3% | 06/21 Natural Gas July NGN24  $2.71   -1.3%  | 06/21 Active U.S. Rig Count (Oil & Gas)   588  -2  | 06/21 USD/MXN Mexican Peso   18.1130 (data live)  | 06/21 EUR/USD   1.0693  (data live)  | 06/25 US/Bs. (Bolivar)   $36.37250000 (data BCV)

Pemex refining system to rebound in 2024 – Argus

Crude oil processing in the Pemex refining system '000 b/d  - Argus Media
Crude oil processing in the Pemex refining system ‘000 b/d – Argus Media

Antonio Gozain, Argus Media

EnergiesNet.com 03 05 2024

Mexican state-owned oil company Pemex’s refining system could surpass the 1 million b/d volume of crude processed in 2024 for the first time in nine years, as billions of dollars in refinery investments materialize in the last year of Andrés Manuel López Obrador’s presidency.

In January, Pemex’s six domestic refineries processed 954,100 b/d of crude, up 14pc from a year earlier and 16pc higher than in December, according to data from the Energy Secretariat (Sener).

This is the highest monthly crude throughput of Pemex’s refining system since April 2017, when it processed 978,100 b/d, according to the same data.

The increase was the result of a 54pc rise in crude processing at the Salina Cruz refinery – Mexico’s largest – and to a 36pc increase at the Madero refinery, after both refineries underwent maintenance during the fourth quarter of 2023.

“[Pemex] continues to focus on restoring the mechanical integrity of processing plants and storage tanks,” Pemex vice president Reinaldo Wences said on 27 February during the company’s results presentation.

Mexico’s national refining system has the capacity to process 1.627 million b/d of crude, according to Pemex.

But the last time Pemex processed at least 1 million b/d in a full year was in 2015 (see chart), shortly after the 2014 reform went into effect, which opened the country’s energy sector to private and foreign investment, previously under monopoly by Pemex.

But this changed with the arrival of nationalist President López Obrador, with significant investments to rehabilitate Pemex’s refining system.

Since 2019, Mexico has invested more than $29 billion in the construction of the new 340,000 b/d capacity Olmeca refinery, maintenance of its domestic refineries and the construction of two cokers. In addition to the completion of the purchase of 50pc of the Deer Park refinery with a capacity of 312,500 b/d in Texas, according to Sener data.

Mexico could exceed crude processing of 1 million b/d this year for the first time since 2015, but will require Pemex to start commercial operations at the long-delayed Olmeca refinery.

The new refinery is expected to process 242,000 b/d of crude this year, Pemex CEO Octavio Romero said in January. But February has ended and the refinery has yet to start operations.

Self-sufficiency, still a distant reality

Mexico produced 496,200 b/d of gasoline and diesel in January, 18pc more than the 420,500 b/d of the same month in 2023, according to Sener data.

With an average demand of 1.2mn b/d of gasoline and diesel in Mexico, even with the additional 208,000 b/d of fuels that Olmeca will produce in 2024, according to Pemex estimates, the company would still have to increase production by almost 500,000 b/d to achieve self-sufficiency.

Pemex’s Deer Park refinery would have an estimated fuel production of 242,000 b/d in 2024. However, during 2023, that refinery exported only 7pc of its total production to Mexico.

While coker units, still under construction, at the Tula and Salina Cruz refineries would add 162,000 b/d of fuel production by 2026, according to Pemex.

Pemex’s ultimate promise of self-sufficiency would be reached in 2026 if the company achieves its goal of having a revamped refining system operating at full capacity.

Translated by Elio Ohep, Editor EnergiesNet.com

argusmedia.com 03 04 2024

Share this news

Support EnergiesNet.com

By Elio Ohep · Launched in 1999 under Petroleumworld.com

Information & News on Latin America’s Energy, Oil, Gas, Renewables, Climate, Technology, Politics and Social issues

Contact : editor@petroleuworld.com

CopyRight©1999-2021, EnergiesNet.com™  / Elio Ohep – All rights reserved

This 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.

Scroll to Top