China becomes PEMEX's second external diesel source

From August 2017 to July 2018, PEMEX has received shipments from China. The highest volume registered was in December 2017, when PEMEX acquired 1,000,028 barrels
China becomes PEMEX's second external diesel source
China is quickly becoming Mexico's second fuel source – Photo: File Photo/REUTERS
11/09/2018
12:03
Noé Cruz Serrano
Mexico City
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Mexico is buying and consuming Chinese diesel, a product PEMEX in importing to Mexico, as private importers prefer to import diesel from the US.

According to information from the Energy Secretariat (Sener), the Asian country is turning into the second external source of this kind of fuel in Mexico.

Between July 2017 and July 2018, 8,669 diesel barrels have been brought to Mexico per month, 6,754 were bought by PEMEX, and 1,271 were bought by private companies in the US market.

Other 430,000 barrels were acquired by PEMEX, on a monthly average, in August, October, November, and December 2017; and in January, February, March, April, and July 2018, from the Chinese market.

A monthly average of 380,000 barrels come from Japan, and 207,000 barrels came from Canada, and to a lesser number from Colombia and Malaysia.

Nevertheless, the imported diesel hasn't always had the quality required by the Mexican Regulation No. 016, Fuel Quality.

In November 2017, when the highest importation level of the year was registered, the Energy Regulatory Commission (CRE) forbid PEMEX Industrial Transformation from commercializing automotive diesel with specifications different from the quality regulations established for the metropolitan area of the Valley of Mexico in Cuernavaca, Cuautla, Iguala, Gómez Palacio, Hidalgo del Parral, and Chihuahua.

This product is used in public transport, cargo transport, farm machinery, fishing boats, and authorized vehicles.

Information from the Sener indicates that the fuel importation scheme carried out by private importers, which was liberalized on January 2017, is moving at a quicker pace than in the case of diesel, and more slowly in regards to external oil sales.

The private companies control 16.4% of the external acquisitions of these type of fuels and contribute with 3.57% of the imported gas.

The importation permits granted to private companies up to May 2018 are 512, while the permits granted to private companies for external gas acquisitions amount up to 390.

Nevertheless, private companies prefer to buy it in France and the US, although 99.8% comes from the US market, because of geographical and price reasons, and that market is currently considered as the “cheapest one in the world”.

From August 2017 to July 2018, PEMEX has received shipments from China. The highest volume registered was in December 2017, when PEMEX acquired 1,000,028 barrels.

In July 2018, PEMEX's client portfolio included the US, from where the majority of the fuel was imported from, followed by Japan, Canada, Colombia, Malaysia, and China.

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