moisheh
North America
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ED: Here is what I had posted. The world of fuel marketing appears to be complicated. Names we have never heard of. The refineries are also changing names! The fellow I spoke to was an Arco engineer. I just Googled the company named in my post and asked to speak to someone that could provide info! For once you and I agree: In no time at all ULSD will be everywhere. I would not be shocked to see Pemex becoming a bit player when it comes to marketing. I also wonder when Pemex will sell Magna that is low sulfur! I only use their
Premium as the Magna can play havoc with the catalytic convertors.
PREVIOUS POST:
"Today's El Imparcial has an article about more US fuels being imported. I cannot find the article on line without a subscription to some of the papers that published the article. I can understand most of the article. Presently there are 3 companies importing fuels for the retail market. Only one is identified in the article. It is Andeavor. Formerly Tesoro. I called their headquarters and asked if the diesel is ULSD. They are only exporting fuels produced in their own refinery. They only produce ULSD! The stations in Mexico are branded ARCO. They do their own transportation. Unfortunately at this time the fuel is going to TJ but soon will be in Rosario. There are 2 stations in TJ. There was also mention of a new company: Pemex Logistics. Not much help for the mainland but I would bet that shortly more US Refineries will have a presence in Mexico with US fuels. Apparently Arco is the only one that has the capability of doing the importing and the transportation. There is a Chevron station in HMO but the fuel is supplied by Pemex and they add Techron."
Moisheh
Moisheh
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MEXICOWANDERER
las peñas, michoacan, mexico
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Joined: 06/01/2007
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The big obstacle has always been the Pemex oil worker's union. Until the graft and corruption has been ironed out (?) No US refiner would be foolish enough to invest billions in Mexico.
Brazen fuel pipeline thefts? They are orchestrated by Pemex employees. The sindicato is so close to the carteleros, it's hard to tell between the two.
There are two reasons why Pemex chose to import fuel
a)Astronomical cost of repairing and upgrading refineries and fuel is needed NOW, not in three or five years.
b) A union where the president makes more money than the entire board of directors of Petroleos Mexicanos.
How bad is theft?
A few days ago a train was robbed near Puebla and ONE THOUSAND TONS of grain feed for animals was unloaded and carted away.
La Republica is facing a daunting task to keep cartels from stealing the family jewels. At home in Lazaro Cardenas an ore carrier was loaded with tens of thousands of tons of iron ore diverted from the Mittal operation, and the freighter sailed off into the sunset.
Importing fuel will let the oil worker's union know the ramifications of running a collection agency. In fact I think last month the union came crawling to the bargaining table (on the 7th). Importing oil will also ease the strain of outstretched hands in the camaras of diputados and senadores. The institution was being bled to death.
So Pemex decides to abdicate processing oil and a flood of extraneous processed oil products is entering the country.
Looks like a good hunk of the country will have UBA by the end of 2018. But south of Mexico City and West of Villahermosa will be a real challenge.
I wouldn't look for any changes in MAGNA in the near future. Having used both Mexican Magna and USA Magna, there is a sharp quality difference between the two in my overly sensitive toad engine.
Again Mexico DF will lead the way for Magna upgrades or importation to get the USA lower sulfur fuel. It'll be because of emissions in Mexico City.
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Ed White
Kelowna, BC, Canada
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Today I received the results from lab testing of a sample of diesel fuel I collected from the main Pemex station at Los Barriles, in the Southern Baja, about one hour north of San Jose del Cabo.
I collected the sample in late November because there had been ZERO reports of sulfur-in-fuel related issues up until that point this winter season, and my own truck, a 2016 GMC Sierra Duramax had also not experienced any sulfur-in-fuel related symptoms. In past years, by the end of November, I would have needed to force at least 2 regenerations to burn sulfur out of the emissions system, and there would have been lots of sulfur-in-fuel problems in Cabo, La Paz, La Ventana, Mulege, and Loreto.
Five weeks have passed while I have been waiting for the lab results, because the sample had to be transported to a lab in the USA. During these five weeks of waiting there have still been NO instances of sulfur-in-fuel related issues reported to me in the Southern Baja, and my own truck has not required a single forced regen since my arrival at the end of October.
The anecdotal evidence has been suggesting that the fuel is ULSD, and now the lab test has confirmed it. The sample tested at 6.3ppm, which is significantly lower than the 15ppm required to meet ULSD specifications.
I have tried to get official confirmation that the desulfuring upgrade to the refinery supplying this area has been completed but nobody at Pemex will confirm or deny that the upgrade has been done. However, the very low levels of sulfur mean that the fuel came from a very modern desulfuring facility.
At this point I feel confident that there is enough evidence to declare that the diesel fuel in the Southern Baja is now ULSD.
In other words, all of the diesel fuel on the Baja, from top to bottom, is presently ULSD. There are no guarantees in life, but it appears that Pemex has completed the conversion from LSD to ULSD in this area.
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MEXICOWANDERER
las peñas, michoacan, mexico
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Salina Cruz is off-line. The commercial electrical rates for Baja California have just shot up 300%. Huge uproar. The plant uses number six fuel oil. Now it has to be shipped in from elsewhere.
It's a whole new ballgame. Ed what you measured is ULSD from JAPAN not the USA. Japan strives for the lowest number possible. Some UBA diesel tested "No detectable sulfur". USA ULSD rarely tests under 12 PPM.
The near collapse of Petroleos Mexicanos is troublesome. Are they trying to break the union? About as transparent as lead.
But foreign fuel is now the dominant player in Mexico. As far as my toad was concerned Mexican refined MAGNA was awful. Meticulous but thankfully periodic, dosing with Chevron Techron was mandatory.
Andres Manuel Lopez Obrador, swears up and down he is going to revive PEMEX after he is elected. Good luck with that. Refinery explosions were becoming routine. A new 150,000 bbl/day refinery is going to cost more than a billion dollars. In 1966 the Shell Light Oil Processing plant in Martinez, CA. Cost $300,000,000 Shell owned the land.
I really expect gasoline prices down here to exceed 20 pesos per liter within 3 years. Same for diesel.
I have plans to purchase a tiny scooter for local use.
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DieselBurps
SLC
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ED, the Edge CTS OBD reader/monitor will NOT do a manual regen on a Cummins truck. It can show when the truck is in regen but it can't force it to do one.
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Ed White
Kelowna, BC, Canada
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Thank you for that info DieselBurps. Luckily the need to force a regen because of sulfur in Mexican fuel won't be needed. NOT A SINGLE CASE of sulfur-in-fuel problems has been reported to me from Mexico this winter season. The country is awash with ULSD, and well on track for 100% compliance by December.
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ppine
Northern Nevada
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Thanks Ed.
When I learned that the new prezident was elected, we almost headed for the Okanagon. If I was younger I definitely would have.
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MEXICOWANDERER
las peñas, michoacan, mexico
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According to Javier, there are now more than 30 extraneous brand names shown on gasolineras. Here, one Pemex is now a BP so the rebranding is not limited to new construction.
Of interest is a station originating in France. They said they are using Pemex fuel at present but sometime this year they will start importing fuel from Algeria. The company is bragging their UBA diesel has a proprietary blend of additives that eliminates the need for customer diesel supplements to ****** plant contamination (algae). The gasoline is supposed to contain nitrogen urea compounds (which I suppose will act like Chevron and Shell gasoline additives).
Javier had no inside information about what is or what is not happening to the Salina Cruz refinacion. But for years tankers have been off-loading refined in USA Premium, so I dearly hope that Japanese refined diesel is finally making an introduction way down south.
Note: Fuel prices have zagged upward locally in the last two weeks -- about 4% for Pemex and extraneous stations -- all grades of fuel. I'll will believe the touts of price adjusted for market when I see the pump price decrease. Something I have never seen down here in 53-years.
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MEXICOWANDERER
las peñas, michoacan, mexico
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According to Javier, there are now more than 30 extraneous brand names shown on gasolineras. Here, one Pemex is now a BP so the rebranding is not limited to new construction.
Of interest is a station originating in France. They said they are using Pemex fuel at present but sometime this year they will start importing fuel from Algeria. The company is bragging their UBA diesel has a proprietary blend of additives that eliminates the need for customer diesel supplements to suppress plant contamination (algae). The gasoline is supposed to contain nitrogen urea compounds (which I suppose will act like Chevron and Shell gasoline additives).
Javier had no inside information about what is or what is not happening to the Salina Cruz refinacion. But for years tankers have been off-loading refined in USA Premium, so I dearly hope that Japanese refined diesel is finally making an introduction way down south.
Note: Fuel prices have zagged upward locally in the last two weeks -- about 4% for Pemex and extraneous stations -- all grades of fuel. I'll will believe the touts of price adjusted for market when I see the pump price decrease. Something I have never seen down here in 53-years.
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Ed White
Kelowna, BC, Canada
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It's that time of the year again - Snowbirds are preparing to head south for the winter, so it's also time to post an update regarding the availability of Ultra Low Sulfur Diesel (ULSD) in Mexico.
Drum roll please, because this looks like it will be the last time I have to post an update. The diesel fuel at all of the retail outlets in Mexico is now ULSD, meaning that the days of pumping high sulfur diesel fuel in Mexico are over.
All of Pemex's diesel producing refineries have been updated with desulfuring plants and Pemex is listing all of it's diesel production as ULSD, 15ppm or less of sulfur. You can see the information in the first paragraph at this Pemex link:
http://www.pemex.com/comercializacion/productos/Paginas/refinados/diesel.aspx
So, it's time for me to retire from assisting owners of late model diesels, and all of you out there who have been saying you won't risk trading in your old tired out-dated diesel can finally go and buy a new one.
Have a great winter in Mexico
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