PdV defends gasoline quality amid output pressure
Venezuelan firefighters in the country's historic oil-producing center of Maracaibo have new advice for drivers filling their tanks — disconnect the battery and keep a fire extinguisher handy.
Drivers have complained of cars catching fire and exploding during fill-ups recently, which they have blamed on poor-quality gasoline from state-owned PdV's refineries that struggle to produce enough to meet demand.
But PdV is using a social media post to deliver its own advice to drivers: smell the gasoline.
The short video posted yesterday shows a uniformed PdV worker arriving at a crowed gas station, passing around a five-liter clear plastic bottle full of a yellowish liquid, urging the crowd to "Smell it!" Myriad noses and fingertips test the liquid, even a uniformed policeman obliges. "Ah, yes," one man says. "You can tell the difference."
But complaints about PdV gasoline quality have predated the video campaign for years. The largest business chamber in Venezuela, Fedecamaras, said gasoline quality has worsened recently and is seriously affecting the country's motor vehicles.
Venezuela's refineries have deteriorated after years of under-investment. In March, PdV produced 120,000 b/d of gasoline, according to PdV figures compiled and validated by a Caracas consultancy and seen by Argus. That is less than half the 300,000 b/d it was producing in 2012, according to PdV reports.
Output increased slightly in March from 90,000 b/d in February, and is over the 2022 average of 90,000 b/d. Russia has urged Venezuela to help supply more crude and fuels to its ally Cuba, in the face of energy shortages there.
But the El Palito refinery has not produced any gasoline since August 2022, shortly after key crude processing facilities there were allegedly damaged by a batch of Iranian crude that fell outside of specifications.
The fuel quality decline began in earnest in 2012, after an explosion at the CRP refining complex that left some units permanently damaged. Venezuela began importing key gasoline-making components from Brazil and other countries, eventually stopping production of gasoline altogether during the Covid-19 pandemic. It imported some gasoline from Iran.
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ExxonMobil exits, Vitol enters California RD project
ExxonMobil exits, Vitol enters California RD project
New York, 26 June (Argus) — A company hoping to construct a 15,000 b/d renewable diesel refinery in Bakersfield, California, this year has settled a dispute with ExxonMobil and inked a new offtake deal with Swiss commodity trader Vitol, providing a reprieve for a project that has been financially stressed. Global Clean Energy Holdings will pay ExxonMobil $18.2mn as a one-time settlement and cancel all 125,000 shares of Global Class C preferred stock that the US oil major had owned, according to a regulatory filing on Wednesday. Two ExxonMobil employees have exited the Global Clean Energy board. The two companies will also ask the Delaware Court of Chancery to dismiss a complaint brought by ExxonMobil that alleged wrongdoing. ExxonMobil had previously moved to cancel an offtake agreement to purchase much of the plant's expected output, citing various production delays, and asked the Delaware court to compel the release of Global internal files. A Global subsidiary has entered into a new agreement with Vitol, in which the trading firm will be the "exclusive supplier of renewable feedstocks" to the Bakersfield plant and "exclusive offtaker" of all renewable diesel and naphtha produced by the facility and its associated environmental attributes, according to the filing. The two companies also entered into a revolving credit agreement, which provides Global with a working capital loan of $75mn. Global Clean Energy has said it wants the facility's primary feedstock to be camelina oil, which would be more able to capitalize on low-carbon fuel incentives because it comes from a cover crop. But the company said in an April regulatory filing that it expects to use only a "minimal amount" of camelina oil in 2024 and 2025. The filing on Wednesday also lists soybean oil, canola oil, and various waste feedstocks, such as used cooking oil, as potential feedstocks Vitol could supply. The agreement with Vitol provides fresh hope for the long-delayed Bakersfield project, one of a handful of renewable fuels facilities that have set plans to come online in California. Global Clean Energy as recently as last month warned there was "substantial doubt" about its ability to survive, given its debt obligations and the uncertain timing for completing its facility. Vitol can terminate the supply and offtake agreement, which is otherwise set to last for three years and can be extended for two more, if the project is not producing at least 5,000 b/d of renewable diesel by 31 October this year. Global Clean Energy declined to provide more details on its construction timeline today but said in a regulatory filing last month that it planned to commence "the start-up phase" of the project this month and begin initial commercial operations during the third quarter. The facility, if completed, could face additional headwinds. Declining prices over the last year for federal renewable identification numbers (RINs) and California low-carbon fuel standard credits have depressed margins for renewable diesel producers. And the growth of biorefineries in the state — including Phillips 66's Rodeo facility that the company said Wednesday is running at full capacity — could mean steep competition for feedstocks. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Mexico’s gasoline, diesel prices hit record highs
Mexico’s gasoline, diesel prices hit record highs
Mexico City, 26 June (Argus) — Mexico's average retail prices for gasoline and diesel have increased to all-time highs, driven by relatively lower tax deductions and higher international prices. Retail prices for regular gasoline in Mexico reached Ps23.73/l ($4.95/USG) on 25 June, up by 8pc from a year earlier and the highest since Argus in July 2018 started tracking prices reported by retailers to the energy regulatory commission (CRE). Regular gasoline's average retail price surpassed the Ps23/l barrier on 16 February for the first time. Similarly, national average retail prices for diesel reached an all-time high Ps25.38/l on 25 June, up by 7pc from a year earlier, the same data show. The hike was in part supported by a combination of lower tax deductions, higher international prices and a weaker Mexican peso. The excise tax deduction for regular gasoline was set at Ps0.3621/l for the 22-28 June week, down from a Ps1.2845/l tax deduction in the same week of 2023. Meanwhile, diesel subsidies were 15pc lower for the 22-28 June week year over year. At the same time, delivered regular gasoline prices to Mexico's east coast from the US Gulf coast — which provides most of Mexico's imports — rose by 5pc to $2.34/USG on 25 June, up from $2.22/USG a year earlier, according to Argus assessments. Delivered diesel prices to Mexico's east coast from the US Gulf coast rose by 10pc to $2.50/USG on 25 June year-over-year. Furthermore, the Mexican peso's post-election depreciation has made fuel imports more expensive. The exchange rate stood at Ps18.13/$1 on 25 June, up by 5pc from Ps17.14/$1 a year earlier, according to Mexico's central bank Banxico. By Antonio Gozain Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Phillips 66 completes Rodeo renewables conversion
Phillips 66 completes Rodeo renewables conversion
Houston, 26 June (Argus) — Phillips 66's Rodeo, California, refinery has completed a multi-year, billion-dollar conversion to process only renewable feedstocks, increasing throughput rates to 50,000 b/d. The 128-year-old Rodeo plant stopped processing crude in February , taking up to 115,000 b/d of oil refining capacity offline as it transitioned to producing renewable diesel (RD) and, eventually, sustainable aviation fuel (SAF). The plant initially bought and refined pre-treated feedstocks while building its own 40,000 b/d pre-treatment unit (PTU), whose two 20,000 b/d trains will prepare raw feeds such as used cooking oil, fats, greases and vegetable oil for Rodeo's three renewable diesel units (RDUs) before the end of this month. "The pre-treatment area will run at max rates as soon as it's commissioned," and refine harder-to-process feedstocks later in the year, Rodeo refinery manager Jolie Rhinehart told Argus on site at the plant earlier this month. "Our units will be able to process the lowest carbon intensity (CI) feedstocks, something that's called brown grease." There is also a financial incentive to process lower CI feeds. "That's how you really make money in these assets," Phillips 66 chief executive Mark Lashier told investors at the JP Morgan Energy Power & Renewables conference earlier this month. While optimizing feedstocks may help boost profits at the plant, Low Carbon Fuel Standard (LCFS) credits — which provide much of the financial incentive for renewable fuel conversions — are in the doldrums. A robust supply of low-carbon fuels such as RD to west coast markets has outstripped demand in recent years, helping drive down LCFS credit prices to nine-year lows earlier this month. But the unbalanced market has not led Phillips 66 to alter its strategy. Ample demand for renewable fuels There will be "ample" demand for Rodeo's refined products in the short-term, Rhinehart told Argus . "One thing that is stronger than ever is demand for liquid transportation fuels in the state of California." She plans to run the Rodeo plant like Phillip 66's other crude refineries, altering throughputs according to the cost and availability of feedstocks and the price that it can sell finished product. "We're not going to run if we're not making money," Rhinehart said. Still, the company has signaled its intention to run high rates. "We see good economic incentives to run and run full [at Rodeo]," Lashier told conference attendees, noting that while LCFS credits are "compressed," feedstock costs are also lower than the company anticipated. Another part of the profitability equation Phillips 66 does have control over is the infrastructure to distribute RD, selling Rodeo's product alongside conventional fuels at its "76" brand gas stations across the west coast. The company owns a products pipeline that connects Rodeo to a Phillips 66 marine and truck rack terminal on the San Francisco Bay, just south of Chevron's 245,000 b/d Richmond refinery ( See map). "We're very confident in our ability to place all those [renewable product] barrels locally," Rhinehart said. "And if there's demand outside of the region, we will surely supply that if the market supports it." Rodeo has so far supplied RD to California, Washington and Oregon and the Canadian province of British Columbia. Like a conventional crude refinery, the Rodeo complex will also periodically reduce throughputs for maintenance. Rhinehart expects a catalyst change for one of its reactors every year-and-a-half and a full catalyst change for all reactors every three years. Although Rodeo is up and running, permitting difficulties could preclude any future expansion of the plant. Rhinehart has a "substantial" list of projects she would like to progress, potentially including green hydrogen, but worries whether the company could make it through the permitting process. This was a concern also voiced by Phillips 66's executive vice president of emerging energy and sustainability Zhanna Golodryga in an interview with Argus at the company's Houston headquarters earlier this month. "We probably could have brought Rodeo online sooner if we didn't have to wait for some permits," she said in reference to a back-and-forth with Contra Costa County late last year over Rodeo's environmental impact review. Golodryga is eyeing the Gulf coast for Phillips 66's next low carbon energy hub, believing that Texas is the energy transitions Silicon Valley. By Nathan Risser Phillips 66's west coast refining assets Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Industria mexicana se enfrenta a un peso más débil
Industria mexicana se enfrenta a un peso más débil
Mexico City, 24 June (Argus) — La depreciación del peso mexicano después de las elecciones ha afectado al comercio e inversión en energía, con un dólar estadounidense más caro elevando el precio de las importaciones de combustible y gas natural. El peso perdió aproximadamente 11pc de su valor frente al dólar estadounidense a medida que los mercados reaccionaron a la abrumadora victoria electoral del partido en el poder Morena en las elecciones del 2 de junio. El tipo de cambio saltó de Ps16.65/$1 solo una semana antes de la votación a un pico de Ps18.99/$1 en los días siguientes. Desde entonces, la tasa se ha estabilizado en Ps18.30-Ps18.50/$1 en los últimos días. "El nuevo umbral para el tipo de cambio probablemente será de Ps18 por dólar", afirmó Gabriela Soni, directora de inversiones de UBS Asesores México. Añadió que, aunque el movimiento ha sido abrupto, "creemos que está justificado dada la aprobación esperada de las reformas constitucionales que tienen el potencial de erosionar el sistema de división de poderes y afectar a las decisiones de inversión en el país." Soni se refirió a la consolidación histórica del poder político asegurado por Morena y los partidos aliados en las elecciones que les entregó no solo la presidencia, como se esperaba, sino el control de 27 de las 32 gubernaturas estatales, y solo a unos pocos escaños en el senado de obtener mayorías calificadas en ambas cámaras del congreso. Con los resultados, el camino está muy claro para que el presidente Andrés Manuel López Obrador apruebe las controvertidas reformas judiciales durante su último mes en el poder en septiembre. Esto podría significar la eliminación de las reformas energéticas promercado aprobadas en 2014, la disolución de los reguladores del sector energético de México y el endurecimiento de la visión estatista de López Obrador de un sector energético dominado por la empresa estatal de petróleo y gas Pemex y la empresa de electricidad CFE. El tipo de cambio podría bajar aún más en los próximos meses si la economía se mantiene estable, dijo Pedro López, director adjunto de análisis económico de Banco BASE, un banco especializado mexicano que apoya a las empresas internacionales con operaciones en el país. Dicho esto, el tipo de cambio frente al dólar estadounidense "continuará estando sometido a presiones más elevadas estos meses hasta las elecciones presidenciales de EE. UU. en noviembre", dijo López. López dijo que el mercado debería tener una imagen más clara de México para finales de año, después de las elecciones estadounidenses y con mayor claridad después de la próxima sesión legislativa mexicana. Añadió que las presiones inflacionistas derivadas del aumento del tipo de cambio probablemente llevarían al banco central a mantener la tasa de interés de referencia en 11pc, manteniendo tasas de interés altas en México. Estas, a su vez, atraen a los inversionistas globales de nuevo al peso bajo la dinámica actual de tasas, suponiendo que no haya perturbaciones adicionales. Balance de energía Dado que México es un importador neto de energía desde 2015, "una depreciación del peso mexicano tiende a empeorar el balance del petróleo", afirmó Soni. "Sin embargo, México es un exportador neto en sectores no energéticos, especialmente en la fabricación, y la balanza comercial se beneficiaría en estos sectores." Y aunque el tipo de cambio puede ayudar a México a ganar más dinero por las exportaciones de petróleo, "tenemos que recordar que son cada vez menos", dijo Víctor Herrera, jefe de estudios económicos del Instituto Mexicano de Ejecutivos Financieros (IMEF). Pemex está redirigiendo el petróleo hacia sus refinerías, bajo el mandato del presidente para aumentar la producción nacional de combustible. Como resultado, las exportaciones de petróleo crudo mexicano cayeron 31pc año con año en abril a 618,000 b/d. A pesar de los esfuerzos, los productos refinados importados de EE. UU. siguen representando aproximadamente 72pc de su consumo nacional de gasolina, diésel, gas natural y turbosina, según los datos de la secretaria de energía. Se necesitará tiempo para saber qué beneficios, si los hubiera, aportan las ventas de petroleo de Pemex al extranjero, que se traducen en pesos adicionales, afirmó Herrera. Mientras tanto, añadió: "pagaremos dólares más caros para importar gasolina." Por James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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