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 trucking index at 18-month high in August: ATA
US trucking index at 18-month high in August: ATA
Houston, 25 September (Argus) — US trucking freight volumes rose in August to the highest level since February 2023, the American Trucking Association (ATA) said. The ATA's seasonally adjusted Truck Tonnage Index (TTI) rose in August by 1.8pc from a month earlier and by 0.7pc from a year earlier. The index has increased on a monthly and yearly basis only twice in the past 18 months, last doing so in May 2024 . August's "robust gain" indicates freight levels are rebounding from a bottom, according to ATA economist Bob Costello. The TTI's month-to-month movement so far this year also shows the freight market is "at an inflection point," Costello said. The US trucking industry contracted in 2023 and initially got off to a slow start this year. Last week, the Federal Reserve cut its target lending rates for the first time in four years , suggesting the worst inflationary pressures may be over. The TTI is calculated monthly using a survey of ATA membership to estimate seasonally-adjusted trends in the value of US truck freight. Trucking comprises roughly three-quarters of tonnage carried by all modes of transportation in the US, and so can serve as an indicator of the health of the transportation sector and the economy at large. By Gordon Pollock Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Vertex Energy files for bankruptcy, seeks sale
Vertex Energy files for bankruptcy, seeks sale
Houston, 25 September (Argus) — Specialty refiner Vertex Energy has filed for chapter 11 bankruptcy in a US court following a failed foray into renewable fuels production at its 88,000 b/d Mobile, Alabama, refinery. Vertex has entered into a restructuring support agreement with its lenders and secured $80mn of new funding to finance its day-to-day business operations, the company said late Tuesday. The refiner is also considering a "more value-maximizing sale transaction" and expects to confirm its chapter 11 bankruptcy plan by the end of the year, according to the 24 September press release. Vertex announced in May this year that it would "pause" renewable diesel production at its Alabama refinery and return the unit to producing fossil fuel products. The company later said it would use a third quarter turnaround to return the Alabama plant's converted hydrocracking unit to processing fossil fuel feedstocks and be back online in the fourth quarter. Vertex also operates a re-refinery near New Orleans, Louisiana, that produces low-sulfur vacuum gas oil (VGO) and multiple used motor oil (UMO) processing plants and collection facilities along the Gulf coast. Refiners have faced mixed fortunes in recent years with their investments in renewable fuels after a glut of new supply flooded markets and depressed renewable credit prices. US independent refiner Delek announced in August that it is temporarily idling three biodiesel plants in Texas, Arkansas and Mississippi as it explores alternative uses for the sites. Chevron said earlier this year it was indefinitely closing two biodiesel plants in Wisconsin and Iowa due to market conditions. By Nathan Risser Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Container lines to impose US strike surcharges
Container lines to impose US strike surcharges
New York, 24 September (Argus) — Container ship owners Maersk, CMA CGM and Hapag-Lloyd warned their clients that if a looming port strike takes place, they would implement port disruption surcharges for container cargo moving to and from the US east and Gulf coast terminals. If a International Longshoremen's Association (ILA) strike takes place, CMA CGM's surcharge will go into effect on 11 October. The company will charge $1,500 per twenty-foot container unit (TEU) and $3,000 per forty-foot container unit for cargo moving from Latin America and the Caribbean to the US east and Gulf coasts. CMA CGM's surcharge for exports from the US east and Gulf coasts to Latin America and the Caribbean will be $800 per TEU and $1,000 per forty-foot container unit. Hapag-Lloyd's surcharge of $1,000 per TEU will apply from 18 October to all imports to the US east and Gulf coast. Maersk will implement its surcharge on 21 October. It will include $1,500 per TEU, $3,000 per forty-foot container unit and $3,780 per forty-five-foot container unit for cargo moving in and out of US east and Gulf coasts. Its surcharges are subject to regulatory approval for containers departing from China. The company is prioritizing import container movements before disruptions take place and asking its customers to expedite documentation and customs clearance to retrieve cargo promptly. It warns that strike disruptions will affect terminal operators' ability to monitor refrigerated containers and encourages its customers to plan accordingly to avoid the risk of loss to temperature-controlled cargo. The surcharges would cover higher operational costs that will be incurred due to service disruptions, the companies say. They are exploring alternative routing options. A possible strike could cause some of the container ship cargo to be re-routed to US west coast ports, Canada and Mexico, and then transported on rail or truck to the US Gulf and east coasts. The contract between the ILA and the United States Maritime Alliance (USMX) is set to expire on 30 September. The current six-year agreement covers approximately 25,000 port workers employed in container and roll-on/roll-off operations at ports from Maine to Texas. The USMX reiterated its willingness to reenter discussions with the ILA on a new master contract. By Stefka Wechsler Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Draught limits tighten on lower Mississippi River
Draught limits tighten on lower Mississippi River
Houston, 23 September (Argus) — The US Coast Guard (USGC) placed further restrictions on traffic on the lower Mississippi River as water levels continue to deteriorate. The USCG on 22 September announced that all northbound traffic cannot have draught deeper than 9.5ft from Tunica, Louisiana, to Greenville, Mississippi. For Greenville to Tiptonville, Mississippi, barges must remain above a 9ft draught, the shallowest draught channel allowed for the lower Mississippi River by the US Army Corps of Engineers. All northbound transit also cannot load more than four barges wide or configure more than five barges wide. Southbound traffic from Tiptonville to Greenville cannot be more than six barges wide or deeper than 9.5ft. Greenville to Tunica southbound barges can load as deep as 10ft but cannot be more than seven barges wide. All locations between Cairo, Illinois, and Greenville fell back to their low water threshold over the weekend as rainfall from Hurricane Francine flowed down the river. More grain has moved downriver this year compared with last year as the US Department of Agriculture (USDA) expects higher US grain exports in the 2024-25 marketing year. Around 367,000 short tons of grain moved for the week ended 14 September, which is about double the same period a year earlier, the USDA said. Both south and northbound movement is expected to see a heavier pace in October. 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