10
® Mexico Energy Reform
| Date post: | 19-Feb-2017 |
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Science |
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Mexico Energy Reform
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The retail market is changing
Jan 1, 2017 Free imports of fuel, price control
Free Market
Jan 1, 2016 Other brands allowed
2015 2016 2018
How the Energy Reform Affects the Fuels Market?
Original Time Line
Only PEMEX
2017
Jan 1, 2018
2016 © Afton Chemical Corporation, All Rights Reserved. Not to be copied, shared, or reproduced in any media without the express written permission of Afton Chemical Corporation.
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The retail market is changing
April 1, 2016 Free imports of fuel, price control
Free Market*
Jan 1, 2016 Other brands allowed
2015
How the Energy Reform Affects the Fuels Market?
Revised Time Line
Jan 1, 2017
* Will open by Regions through 2017 - 2018
Only PEMEX
2016 © Afton Chemical Corporation, All Rights Reserved. Not to be copied, shared, or reproduced in any media without the express written permission of Afton Chemical Corporation.
2016 20182017
®
Fuels Distribution
Confidential and Proprietary - Not be copied, shared, or reproduced in any media without the express permission of Afton Chemical Corporation
BEFORE THE ENERGY REFORM
ENERGY REFORM
SUPPLY CHAIN
STORAGE
PEMEX
TRANSPORTATION
PEMEX
DISTRIBUTION
PEMEX Y PRIVATE
CONSUMERS
PEMEX SERVICE STATIONS
INDUSTRIAL
PEMEX & PRIVATE
SUPPLY CHAIN
TRANSPORTATION STORAGE DISTRIBUTION
PRODUCTION& IMPORTS OF FUELS
PEMEX & PRIVATE
CONSUMERS
INDUSTRIAL
PEMEX SERVICE STATIONS OR PRIVATE BRANDS
PRODUCTION & IMPORTS OF
FUELS
PEMEX
2016 © Afton Chemical Corporation, All Rights Reserved. Not to be copied, shared, or reproduced in any media without the express written permission of Afton Chemical Corporation.
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A new Norm for fuels: NOM-016-CRE-2016 Specifies the quality of fuels to be commercialized in Mexico In place as of October 28, 2016 http://dof.gob.mx/nota_detalle.php?codigo=5436878&fecha=12/05/2016 Afton was the only additive Company that participated in the working
groups that elaborated this norm
Consequences of the Energy Reform
NOM-086 (Old) NOM-016 (New)Octane: 92 Octane: 91
Cetane: 48 Cetane: 45
NO EtOH >5.8 EtoH outside Metropolitan areas
Sulphur in Diesel <500 Sulphur in Diesel <15
Did not mention additives for Jet A-1 Mentions additives for Jet A-1
Did not consider Tracers Will consider Tracers
2016 © Afton Chemical Corporation, All Rights Reserved. Not to be copied, shared, or reproduced in any media without the express written permission of Afton Chemical Corporation.
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A new Norm for fuels: NOM-016-CRE-2016 (Cont.) All gasoline to be additized Gasoline to be additized in Mexico, at the last distribution point before
going to a service station or industrial customer The CRE (Comisión Reguladora de Energía) will approve all additives
that go into fuels The requirements for gasoline additives are:
Consequences of the Energy Reform
TEST LIMIT
ASTM D-5598 Standard Test Method for Evaluating Unleaded Automotive
Spark-Ignition Engine Fuel for Electronic Port Fuel Injector
Fouling Treat rate to meet EPA Spec
80.165
No more than 5% flow restriction in any one injector
ASTM D-5500 Standard Test Method for Vehicle Evaluation of Unleaded
Automotive Spark-Ignition Engine Fuel for Intake Valve
Deposit FormationLess than 100 mg of intake valve
deposits on average
2016 © Afton Chemical Corporation, All Rights Reserved. Not to be copied, shared, or reproduced in any media without the express written permission of Afton Chemical Corporation.
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A new Norm for fuels: NOM-016-CRE-2016 (Cont.) The Norm specifies a reference fuel to run the tests. These specs are
described on table 5.1 of the Norm This Reference Fuel has its origins from the EPA 65TH Percentile
Reference Fuel
Table 5.1 Reference Gasoline Specification for Additive Testing in Methods ASTM D5598 and D5500
GasolineSulphur, mg/kg,
mínimum
Destillation Temperature at
90% (C), mínimum
Olefines, % vol.
Minimum
Aromatics, % vol.
Mínimum
Oxigenates, % vol.
mínimum
Minimum Deposits required ASTM D5500
(average mg/ valve)
Regular no oxigenates 80 170 11.4 31.1 0 290
Regular with oxigenates 80 170 11.4 31.1 5.8 etanol or
11 MTBE 290
Consequences of the Energy Reform
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How are Additives Regulated? The CRE will review and approve all additives going into a fuel (Does not
cover after market products), including gasoline detergent packages Gasoline marketers will have to demonstrate every six months with a
report, that the gasoline additive is being used in the quantities required, by presenting a balance between the gasoline being produced or imported and the additive consumption
The CRE (Comisión Reguladora de Energía) started giving fuels import permits since April 1, 2016
New Players In 2016 there has been a consolidation and formation of service stations
associations Some of these Groups have launched their own brands: Oxxo Gas,
Hidrosina, Lagas, Octanfuel, etc. Several newspaper reports about international brands interested in
participating in the Mexican fuels market
Consequences of the Energy Reform
2016 © Afton Chemical Corporation, All Rights Reserved. Not to be copied, shared, or reproduced in any media without the express written permission of Afton Chemical Corporation.
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Six refineries in MexicoPEMEX currently has 77 Terminals There are 11,500 service stations in MexicoGasoline characteristics: 46 MM M3/Year
• Premium 9 MM M3/Year• Magna 37 MM M3/Year
Regular: 87 octanes (AKI) Premium: 91 octanes (AKI) Sulfur: 80 ppmDiesel characteristics: Cetane: 45 minimum Sulfur: 350 ppm (Will go down to 15 ppm)
Interesting Statistics
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Thank You
For more information, please contact:
Jesus [email protected]
2016 © Afton Chemical Corporation, All Rights Reserved. Not to be copied, shared, or reproduced in any media without the express written permission of Afton Chemical Corporation.
