Energy Secretary Rocío Nahle says: “We have flooded the country with gasoline”


During her appearance, this Monday, October 26, 2020, before the Mexican Senate, the Secretary of Energy assured that the country is flooded with gasoline and that there has been disorder in the importation of that fuel. Which, she said, has been recently rectified.

“Pemex has 77 storage terminals, Pemex imports. The private who entered also matter. And suddenly just as there is a huachicol here, and huachicol there, so we began to put an order with the SAT, and with Customs ”, she pointed out and added that also with the Profeco they began to detect that in some gas stations they were selling gasoline that was not reported.

So far in 2020, loads have been increased to the country’s refineries and more fuel has been produced, although he stated that “there are months that due to COVID-19 we had to stop the load in some refineries, because we are saturated of gasoline in the country. There is an excess of imported gasoline besides from the one we are producing “

Nahle highlighted that the production of gasoline had an increase of 10,000 barrels per day on average in 2019 compared to 2018. In 2020, in February and July there was a reduction derived from the rehabilitation work carried out in the refineries , having to take the combined plants of the Minatitlán and Madero refineries out of operation. And the primary plants in Salamanca, Guanajuato.

Additionally, she specified that due to the June 23 earthquake there was a strike at the Salina Cruz refinery for 8 days, but according to the crude processing program, the load on the national refining system has been increasing, and at the end of September, 697 thousand barrels of crude oil were processed per day. And these days we were bringing almost 720 thousand barrels per day, he stressed.

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Nahle García explained that the corrective maintenance progress is 88% in the refineries. This is due to the fact that past administrations abandoned preventive maintenance.

Likewise, the official defended the Dos Bocas refinery project, noting that it will process 340 thousand barrels per day, with a vision of self-sufficiency to reinforce the country’s energy security, as other nations do.

She added that the construction of this refinery will cost 8.9 billion US dollars and that the profitability rate is 14%, considered high, hence the urgency to finish building it, since, in a project of this magnitude, the longer it takes to build, the rate of return is reduced. We need to keep in mind that the AMLO administration discarded the recommendation of the International Monetary Fund (IMF) to stop building the Dos Bocas refinery.

Finally, he highlighted the agreement reached with OPEC member countries and with non-OPEC member nations that allowed Mexico to only reduce its production by 6%.

As of May, oil production remains under the agreement entered into on April 12, 2020, with OPEC.

Dos Bocas, Tabasco, Mexico

“All countries sign a reduction of 23% and Mexico achieved a reduction of only 6%. We were asked to reduce 400 thousand barrels, which was technically very difficult to stabilize that production again. We have mature fields, with nitrogen gas injection, with water injection, and closing the valve and reopening 400 thousand barrels plus the decline that we brought from past years was impossible and it was a blow to Mexico’s finances as well as for PEMEX itself ”, The Energy Secretary concluded.

Source: FORBES MEXICO

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