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Mexico eases fuel permit rules for minor changes

  • Spanish Market: Electricity, Oil products
  • 16/06/22

Mexico's energy regulatory commission will allow retail fuel station owners to make minor changes to permits without approval from the body's top regulators, in a reversal from a policy that tightened requirements a year ago.

"It was a bottleneck," commissioner Guillermo Pineda Bernal told retailers at the Onexpo fuel retail convention in Merida, Mexico, on 15 June. "We had to do something to straighten it out."

The CRE's hydrocarbons unit — as well as its electricity unit for power-related permits — can again approve certain changes without getting permission from the board, according to a notice published in the official gazette to take effect on 16 June.

Rules put into place in June 2021 — order A/019/2021 — meant that CRE's top body faced thousands of applications for permit changes for issues as minor as the change of address of a permit holder.

The CRE is also committed to clearing out its backlog of these and other fuel-sector related permit applications by the end of the year, Pineda said.

He declined to specify the number of applications that have been in process for an extended time, which regulators have attributed to Covid-19-related issues and budget constraints. But Pineda noted that "it is a lot," in comments to Argus on the sidelines.

Delays also began to build after Mexican president Andres Manuel Lopez Obrador called on regulators to help support state-owned Pemex in 2020.

Pineda noted that any applications for entirely new private-sector fuel storage terminals "will be very difficult to get," Pineda said. Mexico's government has recently stopped operations at several non-state-owned terminals because of regulatory lapses which terminals owners have said are minor.

Delays in permitting for new stations or changes at existing ones have been among complaints that retailers say continue to constrain Mexico's density of retail fuel station to less than a third of that in the US. Mexico has one station for almost every 10,0000 residents, or about 12,400 in total, according to government data.

The number of retail fuel stations has grown by 3pc annually over the past six year, but stations per habitant — taking population growth into account — has only grown by 2pc over the same period, Mexico's watchdog for anti-competitive behavior (Cofece) said at the same event.

"As authorities we are looking for more stations that give better services, and this is not happening in a lot of markets," Cofece's head of planning Jose Nery Perez said at the same convention. Cofece during a regular presidential press conference on Mondays calls out retailers for the highest and lowest prices and any anti-competitive behavior.

But retailers have complained of aggressive inspections and regulatory overreach.

Mexico in 2021 seized 791 tank trucks the government found were involved in fuel theft or other regulatory violations and 145mn liters (35mn USG) of different types of fuels, Cofece said.

Yet regulators, including Mexico's environmental and workplace safety agency (ASEA), told retailers that a rigorous regulatory environment is necessary to ensure safety and protect consumers.

"Everyone here has probably had an inspection," ASEA's head of regulatory issues Julio Camelo told the gathering of retailers. "And if you haven't, you are probably afraid of having one."


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04/11/24

Construction spending up in September, asphalt weakens

Construction spending up in September, asphalt weakens

Houston, 4 November (Argus) — US construction spending rose slightly in September, with spending on highways and streets higher. Still, asphalt prices declined. Total highway and street spending rose by 0.4pc in September from August to a seasonally adjusted annual rate of about $141.95bn, according to the latest data from the US Census Bureau. This was 1.5pc above September 2023 levels. Despite the increase in highway spending, wholesale asphalt prices in the US midcontinent hit a four-year low for September on excess supply and subdued demand. Midcontinent railed asphalt prices dropped by $45/st for September delivery to $290-$320/st from August. Waterborne prices in the region saw a similar, $45/st decrease to $300-$335/st. The sharp decline stemmed from turnaround activity beginning in late August at BP's 435,000 b/d Whiting, Indiana, refinery which boosted supplies as adverse weather in the southeastern US stifled wholesale demand. The National Weather Service reported above-average precipitation from Louisiana to Virginia in September with Tennessee seeing its fourth wettest September on record. Hurricane activity in early July and late September also impacted demand for the month with construction firms reporting lower third quarter product shipments because of extreme weather conditions. Total spending was up 7.3pc through the first nine months of 2024 compared to the same period in 2023. Private construction spending was supported by residential investment while nonresidential spending fell. Manufacturing spending fell while commercial spending rebounded from August, reversing previous month's trends. Spending on water supply continues to grow. By Aaron May and Cobin Eggers US Construction Spending $mn 24-Sep 24-Aug +/-% 23-Sep +/-% Total Spending 2,148,805.0 2,146,048.0 0.1 2,055,216.0 4.6 Total Private 1,653,624.0 1,653,160.0 0.0 1,592,388.0 3.8 Private Residential 913,632.0 912,186.0 0.2 877,629.0 4.1 Private Manufacturing 234,302.0 234,803.0 -0.2 194,941.0 20.2 Private Commerical 119,191.0 118,927.0 0.2 139,861.0 -14.8 Total Public 495,182.0 492,888.0 0.5 462,829.0 7.0 Public Water/Sewage 76,805.0 76,462.0 0.4 69,634.0 10.3 Public Highway/Road 141,049.0 140,349.0 0.5 138,694.0 1.7 US Census Bureau Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Saudi Luberef’s profit down on year in Jan-Sept


04/11/24
04/11/24

Saudi Luberef’s profit down on year in Jan-Sept

Singapore, 4 November (Argus) — State-controlled Saudi Aramco's base oil subsidiary Luberef posted a significant decrease in profit in January-September as a result of lower margins. Profit in January-September dropped by 38pc from the previous year to 764mn Saudi riyals ($203mn), although revenue rose by 6.5pc on the year to SR7.4bn. This is because base oil and by-products margins decreased. Luberef's base oil sales volumes in the first nine months of this year were up 1pc to 929,000t as compared with 918,000t in the same period last year. Luberef's profit in the third quarter was down by 34pc on the year to SR226mn, against a 2pc on the year drop in revenue to SR2.5bn. Argus -assessed Asian fob Group I and II base oil export prices were largely lower over the third quarter, especially for light grades, while heavy-grade prices were relatively supported because of tighter supply. The Yanbu "Growth II" expansion project is expected to completed at the end of 2025, the company said. This will bring the base oil production capacity at the Yanbu facility to around 1.3mn t/y. Luberef is also studying a project to produce Group III/III+ base oils, which is at the pre-front end engineering design stage. By Chng Li Li Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Latin America mulls nuclear power revival


01/11/24
01/11/24

Latin America mulls nuclear power revival

New York, 1 November (Argus) — Nuclear power is gaining traction in Latin America as countries see small modular reactors (SMRs) as options for remote regions that are not connected to power grids. "The advent of SMRs are behind Latin America's new interest in nuclear energy, because they do not need to be large and do not require large investments," said Modesto Montoya, a nuclear physicist and former president of the Peruvian Institute for Nuclear Energy. Nuclear power is not a prevalent source of electricity in Latin America, producing around 2pc of the region's power consumption. There are seven nuclear power plants with a total capacity of 5.07GW in operation in the region, located in Argentina, Mexico and Brazil. Argentina has a 32MW SMR plant under construction. But the role of nuclear could increase in the region. Argentina, Brazil and Mexico are providing technical advice to countries that are considering including the technology in their power systems. Earlier this month, El Salvador approved a nuclear energy law and signed a memorandum with the Argentinian government for scientific and technology cooperation for nuclear power. Daniel Alvarez, director of the Agency for Implementation of the Nuclear Energy Program in El Salvador, told Argus that the country was "following the book to develop nuclear power. We want to convert El Salvador into a nuclear country." The country needs to replace fossil fuels as half of the country's power capacity is fueled by bunker fuel. It has 204MW of geothermal capacity installed and, while solar energy is possible, the country's size limits the amount of physical space to add large solar plants. The government's plan is to have a research reactor and 400 people trained to manage a nuclear plant within seven years. The next step would be the construction of SMR. "We have to include alternatives for power generation and SMRs are a very good option. We want to include them in our transition to 2050,"Alvarez said. SMRs are also seen as a solution to the energy problem in the northern jungle city of Iquitos, in Peru, energy and mines minister Romulo Mucho said. It is one of the world's largest cities that is not accessible by road and not connected to the national grid, relying primarily on fuel oil for power generation. Peru has had experience with nuclear technology since 1988, when it opened the nuclear research facility, RASCO. Neighboring Bolivia has been working on a small nuclear program since the previous decade with Russia's Rosatom. It has a center for nuclear medicine and is finishing a small research reactor. Ronald Veizaga, deputy minister of electricity and renewable energies, said Bolivia began the program to improve medical treatment for cancer, but has changed gears. "Critics claim SMRs are expensive, but it is more expensive to have blackouts affecting your population and industry," he said. Traditional nuclear Paraguay is considering a more ambitious path, looking at a traditional nuclear plant. "We need to make political decisions if we want to explore a SMR or a large-scale plant to generate 1GW or more," said Jorge Molina, executive secretary of Paraguay's Radiology and Nuclear Authority. Paraguay could work with Argentina and Brazil to create a regional platform. "Our idea is part of regional integration. Our neighbors are already helping us develop our regulations," he said. But the construction of nuclear plants comes with challenges including high costs, time, labor and materials. Brazil began work on the 1.4GW Angra 3 nuclear plant in 1984 but works have been halted and resumed several times since then. The plant is roughly 67pc complete and has been in limbo since 2015. The country's Bndes development bank recently concluded that abandoning the construction of the project would be less costly than completing it. By Lucien Chauvin Countries with installed nuclear capacity in Latin America GW Country Capacity Argentina 1.64 Brazil 1.88 Mexico 1.55 — Ons, Cammesa, Cenace Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Lyondell Houston refinery closure to begin in January


01/11/24
01/11/24

Lyondell Houston refinery closure to begin in January

Houston, 1 November (Argus) — LyondellBasell's 264,000 b/d Houston, Texas, refinery will begin shutting units in January and complete its previously-announced exit from the crude refining business by the end of the first quarter 2025. The Houston plant will shut a crude distillation unit (CDU) and coking unit in January followed by a secondary CDU, coking unit and the refinery's fluid catalytic cracking unit (FCC) in February, the company said in an earnings presentation today. The February unit shutdowns will include the closure of "ancillary units", LyondellBasell said. The company today re-iterated its time line of exiting the refining business by the end of the first quarter and continues to evaluate an advanced recycling or renewable fuels conversion at the plant. By Nathan Risser Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Japan's Hibikinada biomass unit to trial runs in Jan


01/11/24
01/11/24

Japan's Hibikinada biomass unit to trial runs in Jan

Tokyo, 1 November (Argus) — Japan's 112MW Hibikinada biomass plant, which is being converted from coal and biomass co-firing to biomass-only combustion, will trial run in January 2025. The plant in southern Japan's Fukuoka prefecture, which is held by housing and energy company Daiwa House Industry, will conduct test runs to examine if exhaust gas coming from biomass-only operations can meet environmental regulations and verify that the modified boiler can be stably operated. The construction for conversion started in April and nitrogen injection systems for preventing fires have already been installed. Daiwa will resume conversion works in mid-2025 after evaluating results from the first test runs, and complete it by April 2026. It aims to start biomass-only combustion operations around April 2026 to generate 980 GWh/yr of electricity. Of this, 30pc will be sold under Japan's feed in tariff (FiT) scheme while the company is considering other ways to sell the remaining 70pc, including long-term power purchase agreements (PPAs) and electricity capacity auctions. The plant started operations as a coal and biomass co-firing power plant in February 2019, burning 70pc of coal and 30pc of imported wood pellets. Daiwa bought the operating company in January 2023 and announced it will convert the project to biomass-only combustion in April 2023, then halted operations in April 2024 for conversion. It will burn up to around 450,000 t/yr of wood pellets after converting to biomass-only combustion. Daiwa is aiming to develop more than 2,500MW of renewable energy capacity around 2030, including solar, wind, hydro, and biomass-fired power generation. By Takeshi Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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