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Bottleneck of fuel tankers grows at Mexico's ports

April 23/2020

MOSCOW (MRC) -- More than 20 vessels loaded with fuel have waited a week or more to discharge gasoline, jet fuel, diesel and liquefied petroleum gas at Mexicos ports, according to Refinitiv Eikon data, as demand craters due to coronavirus-related lockdowns, said Hydrocarbonprocessing.

Mexico imports most of its fuel and has very limited storage capacity. State oil company Pemex and about a dozen independent importers typically discharge at least two gasoline cargoes per day, mostly coming from the United States.

In January, the United States exported 1.17 million barrels per day (bpd) of refined products to Mexico, in line with the 2019 average, according to the U.S. Energy Information Administration.

Pemex, which mostly imports on the spot market, has not declared force majeure over fuel purchases even though gasoline retail demand declined 60% and diesel demand fell 35% in the two first weeks of March, according to the countrys fuel retail association Onexpo.

In total, 56 tankers loaded with fuel are waiting to enter Mexican ports, of which 21 have been in line for more than a week. The total volume contained in the 21 vessels would be at least 4.2 million barrels, enough for about three days of pre-lockdown demand in Mexico.

Pemex did not immediately respond to a request for comment. Most of the vessels waiting to discharge are anchored near Pajaritos, the main port of entry of imported fuel into Mexico. There are also bottlenecks off Manzanillo and Tuxpan ports, according to the data.

Long waiting times for tankers to discharge typically imply the payment of demurrage fees, which are about USD20,000 per day depending on the vessel size, contract terms and freight tariff agreed.

As MRC wrote previously, in 2016, Pemex shut its steam cracker at its Cangrejera complex for maintenance on February 15. The cracker was idle for about 14 days. The conducted repairs at the cracker were a part of planned maintenance.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polyprolypele (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,724,670 tonnes in the first ten months of 2019, up by 7% year on year. Shipments of all PE grades increased. The estimated PP consumption in the Russian market in January-October 2019 totalled 1,066,520 tonnes, up by 7% year on year. Supply of block copolymers of propylene (PP block copolymer) and homopolymer of propylene (homopolymer PP) increased, demand for statistical copolymers (PP random copolymer) decreased.

Pemex, Mexican Petroleum, is a Mexican state-owned petroleum company. Pemex has a total asset worth of USD415.75 billion, and is the world's second largest non-publicly listed company by total market value, and Latin America's second largest enterprise by annual revenue as of 2009. Company produces such polymers, as polyethylene (PE), polypropylene (PP), polystyrene (PS).
Author:Anna Larionova
Tags:petroleum products, crude oil, PP, PE, Pemex Petrochemicals.
Category:General News
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