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RE: Pemex to Expand Minatitlan Refinery(&Coker)

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Charles Randall

This update on Pemex Minatitlan refinery expansion mentions the previous Cadereyta Refinery and the next expansions at Salamanca and Tula refineries.  But it is entirely wrong that Cadereyta is the only completed expansion this decade, leaves out the expansions at Madero & Salina Cruz refineries.
It also fails to mention that all these expansions (including the new 7th Refinery for Panama or Guatemala) have/are adding new coking units. The Cadereyta and Madero cokers have been online and the coke is on 20 year contract to Cemex for power (petcoke now supplies ~85% Cemex electrical use) & cement plant fuel use. Prior to the new 6 coking expansions the only Pemex coking unit was the 40 MBD Fluid coker at Tula that had 7.0%Sulfur.
The expansions & cokers will help Pemex & Mexico move closer to meeting the shortfall in gasoline & diesel production, substantially increase the amount of heavy oil / Maya crude it can process and reduce the fuel oil production.  Unfortunately for the petcoke guys – Mexico is also a major importer of US high sulfur fuel cokes & all this new domestic production (just like in Spain) will also reduce future demand / export markets for US petcoke placement ….until growth in demand makes room for it again.  <Cemex made claim in 2007 conference that it would switch from petcoke to coal use in 2008 due to high prices – think all the new domestic petcoke added some comfort for them to make that claim>

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