Brazil and India are the first destinations for the green petroleum coke Mexico began exporting from its new Dos Bocas refinery in September, according to data from global trade analytics firm Kpler.
Mexico exported almost 60,000t of green coke in September from the Dos Bocas port in two shipments. Nearly 31,000t was sent to Brazil, and the other 29,000t went to India. Both ships traveled to the US Gulf to top off with more coke before traveling to their destinations. Another vessel loaded 12,000t in October and discharged at the Progreso terminal in Yucatan, Mexico.
Mexico has not been a major coke exporter over the last decade or so, as it has consumed more than it produces. But higher coke production in the country, following the start-up of Mexican state-owned refiner Pemex's new 340,000 b/d Olmeca refinery near Dos Bocas, and lower domestic demand, has led to an increase in exports recently.
Mexican customs reported 124,600t of coke exports in August, according to the latest available data from Global Trade Tracker. This was the first time the country reported significant coke exports in 10 years. Kpler data show 111,400t of coke shipped on two vessels from the Altamira port to India, Portugal and Morocco in August. And a small quantity of less than 10,000t from the Madero port topped off a 45,000t cargo from Texas City, Texas, in October, heading to Rotterdam, Netherlands.
The Olmeca refinery began operations in August, and Pemex chief executive Victor Rodriguez said he expects it to run at nameplate capacity by the end of November. The refinery is expected to produce 1,800 t/d of coke in 2025 and is primarily export-focused, according to Mexican energy ministry Sener.
PMI offered roughly 20,000t of coke from Olmeca in a spot tender issued 23 August. It was not immediately clear which of the September shipments came from this tender.
Pemex's coke can occasionally have a slightly higher sulphur content than typical US Gulf high-sulphur coke, which may limit the number of interested buyers. But sulphur content is not an issue for most Indian buyers. The coke shipped from Mexico to India in September was to be tested by the country's cement makers, but it is still uncertain if the coke will suit their needs. It is possible that the higher-than-average HGI of Mexican coke could result in handling losses and operational challenges, especially during India's monsoon season.
Coke production at other Pemex Mexican refineries has also increased over the past year. Total output across Pemex's Mexican system rose by 45pc to 1.19mn t in the first half of the year, according to data from the refiner. The Cadereyta refinery's coker increased production by 35pc year over year in the first half.
Pemex also has plans for large-scale maintenance projects to revamp its older refineries, such as the Cadereyta, Salamanca, Minatitlan and Ciudad Madero refineries. A new coking unit at Pemex's Tula refinery started at partial capacity in October, and one at the Salina Cruz refinery is expected to be brought online sometime during Mexico's current presidential administration, which is set to end in 2030. The timeline for the Salina Cruz coker is currently uncertain after multiple construction delays.
Higher coke exports from Mexico may also be related to lower demand for coke, as well as cement, and more competitive fuel prices in the country. Mexico-based cement maker Cemex had plans to reduce coke consumption earlier this year, as costs for natural gas have significantly declined. Cemex and other domestic buyers have turned to natural gas in efforts to decrease fuel costs and lower carbon emissions.
Cement makers are also increasing their use of alternative fuels, such as refuse-derived fuel. So far in 2024, alternative fuels have accounted for 37.5pc of Cemex's fuel mix. This is down by 2.5 percentage points from the same period last year.
