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2 news articles from yesterday.
https://elceo.com/economia/pemex-suavizara-impacto-de-refinerias-con-inversiones-asg/
Pemex will ‘soften’ impact of refineries with ESG investments
Petróleos Mexicanos (Pemex) and the Ministry of Finance and Public Credit (SHCP) are working on a plan with investors to incorporate environmental, social and corporate governance (ESG) criteria in the oil company through changes in the refineries, said the agency's undersecretary, Gabriel Yorio.
"(Investors) already have a plan, they have investments looking to reconfigure some refineries to reduce fuel oil, so they are already getting involved in these strategies," the official said while participating in a Eurasia Group event.
Yorio acknowledged that adopting this approach is particularly challenging for oil companies because of the role they play in climate change, but considered it a necessary effort to combat it and reduce emissions.
The state oil company currently has six refineries, which were built in the 1970s and are in a rehabilitation process, for which the government of Andrés Manuel López Obrador has allocated 33.581 million pesos, according to President.
But sector specialists consider that the amount is miniscule compared to the needs of these complexes and that some continue to operate well below their refining capacity.
Meanwhile, the production of fuel oil, a polluting and low-value by-product of the refining process, has been on the rise.
From January to October of this year, the oil amounted to 245,397 barrels per day on average, an increase of 43.2% compared to the same period of the previous year, according to data from the Energy Information System of the Ministry of Energy
Pemex's ability to reduce its fuel oil production depends on the reconfiguration of the National Refining System, which requires cokers and desulfurization plants.
https://www.bloomberglinea.com/2021/12/07/reforma-electrica-en-mexico-seria-modificada-con-base-en-el-debate-gabriel-yorio/
"Yorio said that, as part of the announcement for Pemex, a new work model for the oil company and a business plan to increase efficiency and profitability are currently being discussed."
Also good news -
https://www.wartsila.com/media/news/29-11-2021-wartsila-starts-execution-of-600-mw-power-plants-projects-to-mexico-3015324
The Wärtsilä 50DF and 34DF are 4-stroke dual-fuel engines, which can operate on LNG or liquid fuels (LFO, HFO or liquid bio fuel). So no problem to run them on MSAR or bioMSAR.
Great work foxm, this really would be a golden ticket if it comes off and it certainly is looking promising. Maybe not this year but early next year we really need a huge morale boost, let’s hope the new team set up can deliver a much better 2022 with project completions!
Nice find Foxm. Pemex may be considering a range of alternatives for their refineries but even getting one converted to producing MSAR/BioMSAR would be a huge step forward. I'm sure when they see the benefits versus the modest costs, compared to "other" options, further refineries could be switched to work with Quadrise. Here's hoping???
https://www.spglobal.com/platts/en/market-insights/latest-news/oil/102821-mexico-lowers-pemex-tax-burden-as-it-targets-2-mil-bd-production-by-2024
Tax breaks for Pemex, who have targeted production of 2m/bpd by 2024. Just getting a fraction of that would be game-changing!!
Aahh! Mexico......I feel an MOU coming on and you know what that means?..........Absolutely nothing just like all the other ones
I have no expectation that Mexico will enrich me. Why? Because I no longer have to worry that I might die in my eighties. These possible contracts do seem to take time to complete, don’t they?
Tirelire please hang on are you 90 now lol
Someone please give me good news before the year is out
if not i'm going into hibernation again
Kurly
It’s frustrating kurly but it’s time for cool heads
15 years awaiting is what i call a cool head
who the hell invented covid ? :-)
Maersk
Kurly Im sure you can wait another 15 years time just flys.
Bod carn't use 'planning the christmas party' for lack of coms and progress.
Mexico news very, very soon? Before the end of the year?
At AMLO's news conference yesterday, he announced that the new Pemex Business Plan which Mexico's deputy Finance Minister, Gabriel Yorio, referenced at the start of the month, is to be released next week by the Pemex CEO, Octavio Romero, and the Secretary of Energy, Rocío Nahle (remember her?).
So just how are you planning to increase refining capacity and reduce all of that fuel oil production? Please do tell, the suspense is killing me.
https://www.jornada.com.mx/notas/2021/12/22/politica/sube-capacidad-de-refinacion-del-pais-en-700-mil-barriles-diarios-amlo/
The country's refining capacity increases by 700 thousand barrels a day: AMLO
Mexico City. When ratifying the plan to be self-sufficient in fuel by the end of 2023, President Andrés Manuel López Obrador today thanked the United States President, Joe Biden, “for their trust in the officials of all government agencies who participated in this authorization, for the purchase of Deer Park refinery ".
López Obrador reported today that the $ 1.2 billion operation for which Petróleos Mexicanos acquired the plant located in Texas was completed. He thanked "Shell managers for maintaining the operation in the agreed terms and telling the people of Mexico that this means having more capacity to process the crude oil that is extracted from wells in our country."
With this refinery, he added, with the new Dos Bocas refinery, and also with the Tula coker, we are increasing our refining capacity by around 700 thousand barrels per day.
To this must be added an average of 10 billion pesos of investment for the rehabilitation of the six existing refineries, stressed the president.
He also said that production is increasing and it is expected that by next year the country will have a capacity of 1.2 million barrels, plus the 700 thousand referred, so that in 2023 all fuels for internal consumption will be produced in Mexico.
"It is a very important turn in oil policy," he said. He stressed that in Mexico a new refinery had not been built for 40 years, "always with the lie that refining was not a business."
"As we have said many times in a metaphorical way: sell orange to buy orange juice.
Now we are moving towards self-sufficiency to keep prices low on gasoline, diesel and other products, "added López Obrador.
"That is the change in oil policy, among other things."
https://www.elsoldemexico.com.mx/mexico/politica/adelanta-amlo-que-pemex-ya-cuenta-con-plan-de-negocios-7641338.html
AMLO anticipates that Pemex already has a business plan
The intention of this plan, assured the president, is for Pemex to turn again to the policy of self-sufficiency of fuel supply in the country
President Andrés Manuel López Obrador assured that the Secretary of Energy , Rocío Nahle , together with the CEO of Pemex , Octavio Romero , developed a business plan for the state-owned production company, which consists of 10 basic points for it to reach its potential and, will be released next week.
Referring to this decalogue, the president said from his morning conference on Wednesday that this plan has to do with activities such as: exploration, refining, gas, the recovery of the domestic market; ensuring that prices do not rise, and continuing with the alliance with Pemex workers .
He also stressed that an important issue within this plan is the security and maintenance of the equipment in the infrastructure of the parastatal.
He stressed that the purpose is to make Pemex "turn" again to the policy of self-sufficiency of fuel supply for Mexico . Well, he pointed out that one of his government purposes is to keep fuel prices stable, so that they do not increase in real terms.
During the president's conference, it was announced that next week, they will release the details of this business plan.
According to this article, the six Pemex refineries will have to increase their production from the current 45% capacity to 80% capacity, for the country to become self-sufficient. Even at 45% capacity, they are currently producing 14.5 million tons of HFO a year, get to 80% and it will be more than 25 million tons. Some of that will be diverted to new cokers in a couple of refineries, but even with just 3 refineries running MSAR, we are still looking at a massive project.
https://www.altonivel.com.mx/economia/deer-park-cuanto-deberan-producir-todas-las-refinerias-de-pemex-para-que-mexico-sea-autosuficiente/
And how much is needed to satisfy the demand for gasoline in Mexico?
Ramses Pech, analyst at Caraiva y Asociados, indicated that, with data from Pemex and the Ministry of Energy (Sener), the country demands 1.2 million barrels of gasoline and diesel on a daily basis.
According to the specialist, with data from April 2021, the six Pemex refineries are currently operating at 45% of their capacity, which gives a total of 224 thousand barrels of gasoline and 115 thousand of diesel a day, when demand is 800 one thousand and 400 thousand barrels per day, respectively.
In order to meet the demand for gasoline and diesel in the country, Pech projects that, by 2024, the 6 Pemex refineries must operate at 80% of their capacity , which would give about 487 thousand barrels of gasoline and 268 thousand of diesel per day.
Likewise, 165 thousand barrels of gasoline and 122 thousand barrels of diesel would be added per day from the Dos Bocas refinery, Tabasco, which would already be operating in 2024. In addition, 94 thousand barrels of gasoline and 53 thousand barrels of diesel from the Cangrejera complex would be added, plus the 110 thousand of fuel and 90 thousand of diesel from Deer Park.
All of the above would give a total of 856 thousand barrels of gasoline and 533 thousand of diesel a day, in sum, 1.3 million. Enough to cover the demand for these fuels in Mexico.
Of course, this will happen if the above assumptions are met and there are no setbacks in the government and Pemex plans.
Thanks for the 2 x lots of updates information regarding Mexico and Middle East, I will be waiting passionately for the next RNS ,
FItzy you know the next one will be a price monitoring extension
While I hate to **** on anyone's bonfire the Middle East and Mexico "developments" do not enthuse me at all. Either project coming to fruition would be the making of QFI success story, however the white paper is from August 2020 and nothing since suggests any progress made.
Mexico's oil development plans also appear to be focused on self-sufficiency in petrol and diesel again with no mention of solutions for the glut of HFO residues, which is of course where we would fit in.
There could of course be plans going on behind the scenes in both but until I hear definitively, they remain in the jam tomorrow projects. Also, fwiw, I believe Morocco is more or less dead in the water. So for me, the best hope near term is Utah and the potential to work with Tomco & Valkor on their deeper oil reserves, (oil sands projects years away) and of course MSC trials. Hopefully we'll see progress on both in the first half of next year, leading to commercial contracts by end 2022/early 2023, just before the money runs out.
From less than a month ago:-
Mexico:
• NOC Refinery & Powerplant opportunities being
progressed using Redliner, future export location.
• Draft study prepared for three main NOC refineries
I'm not really sure how anyone would come to the conclusion of 'dead in the water'
I fear Morocco is dead in the water, not Mexico!!
Sorry Wonga, it's been a long year . . .
I still think Morocco is in play though
Less than a month ago we were told QFI equipment is in Morocco awaiting installation at site B. If it were dead in the water I believe we would need an RNS telling us the equipment is no longer needed in Morocco