to increase their production of gasoline and diesel fuels, Pemex said.
These latest proposed partnerships
for the Cadereyta and Madero refineries follow Pemex’s first joint-venture
agreement for auxiliary services to its
national refining system made with
Air Liquide Mexico SA de RL de CV
for hydrogen supply to the Miguel Hidalgo refinery in Tula de Allende, Hidalgo, in central Mexico, according to
separate releases from Pemex and Air
Under the long-term agreement, Air
Liquide will invest €50 million to acquire, upgrade, and operate Pemex’s
existing hydrogen production unit—
a steam methane reformer (SMR)—to
supply 90,000 normal cu m/hr of hydrogen to the Tula refinery for 20 years
beginning in first-quarter 2018, the
service provider said.
The Tula refinery will use hydrogen from the upgraded SMR to help
produce cleaner fuels as part a series
of initiatives under PTI’s broader Fuel
Quality Project—formerly the Clean
Fuels Project—at its six Mexican refineries, which includes similar ultralow-sulfur fuel projects at the Cadereyta
and Madero manufacturing sites (OGJ
Online, Mar. 21, 2016).
mance pipe and fitting applications
as well as the cap-and-closure market
planned for startup later in 2018.
• A 320,000-tpy increase in output of high-melt index specialty and
conventional polyolefin elastomers
for flexible packaging, transportation,
and consumer markets due to come
online in late 2018.
bids for hydrogen
supply to Cadereyta,
Downstream Technology Editor
Pemex Transformacion Industrial
(PTI), the processing arm of Mexico’s
state-owned Petroleos Mexicanos SA,
is in the process of selecting suitable
partners to supply hydrogen to two of
its refineries in Mexico.
PTI currently is assessing technical and financial proposals from undisclosed bidders for hydrogen supply to the Hector R. Lara Sosa refining
complex in Cadereyta, Nueva Leon, in
northeastern Mexico, and the Francisco I. Madero refinery in Madero, Tamaulipas, the operator said.
While PTI did not disclose a time-frame for when it will reach a final
decision on the partnerships, the
company said it expects the pending
hydrogen supply contracts will result
in direct profits of nearly $134 million
Part of the framework of Pemex’s
2017-21 business plan, the proposed
alliances for hydrogen supply to its
refineries are intended to decrease
operating costs as well as ensure reliable supplies of hydrogen required for
various processing activities to help
reduce the frequency of unscheduled
shutdowns, the operator said.
The pending contracts also will enable PTI to strengthen overall performance of the two refineries by helping
Moves to ban sales
of new oil-fueled
vehicles ignore costs
by Bob Tippee, Editor
Governments suddenly are racing to ban
vehicles fueled by oil products.
The UK and France want to prohibit
sales of vehicles that burn gasoline or diesel by 2040—the former to cut air pollution
and the latter to combat climate change.
Norway has a transportation plan calling for all new passenger cars and vans to
yield no emissions by 2025.
In India, with its heavily polluted cities
and rapidly growing fleets of cars and
trucks, government officials have suggested that all new vehicles sold in the country
be powered by electricity by 2030. China
might prohibit sales of vehicles that run
only on fossil fuels.
After Germany’s recent election, Chancellor Angela Merkel and her Christian
Democratic Union must try to form a
coalition with the business-oriented Free
Democratic Party and Green Party. The
CDU’s former coalition partner, the Social
Democratic Party, joined the opposition.
The FDP opposes Germany’s green-energy program because of the cost, while
the Greens demand more renewable energy and a ban on diesel engines by 2030.
Should be fun.
At least eight other countries have
targets for sales of electric cars, and several US states have set or are considering
All this serves the campaign by environmental extremists to thwart production
and use of oil and gas regardless of the
foresworn wealth. Governments don’t care
if unpopular companies lose value.
But the proposition has another dimension destined to become political backlash.
In a Sept. 26 blog post, Peter Tertzakian, executive director of ARC Energy
Institute of Calgary, notes that more than
1.2 billion vehicles powered by internal
combustion engines are on the road today.
At an average worth of $20,000/vehi-
cle, aggressive fleet turnover would affect
vehicle ownership worth $20 trillion.
“Who will compensate car owners
for trillions of dollars of devalued capital
stock?” Tertzakian asks.
Government officials should have to address that question at the same time they
explain how power can remain affordable
as demand zooms from the forced electrification of road transport.
(From the subscription area of www.ogj.
com, posted Sept. 29, 2017; author’s e-mail:
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