Mexico Pemex stabilises ethane supplies – CEO

Al Greenwood

07-Mar-2017

AnayaHOUSTON (ICIS)–Mexican state energy producer Pemex has stabilised ethane supplies following months of declines, the company’s CEO said on Tuesday.

Mexico receives most of its ethane from associated gas, produced in conjunction with crude oil. The country’s crude production has been falling for years because of natural declines in its mature crude oil fields, causing ethane production to also decline.

Pemex relies on ethane as a feedstock for all of its crackers. The start-up of the Ethylene XXI project compounded the shortage, because Pemex is under contract to supply ethane to the new complex.

While Ethylene XXI has continued to receive adequate ethane, Pemex has had to reduce production at its crackers, limiting ethylene supplies to its downstream units.

Pemex is undertaking a number of projects to improve ethane ssupplies, said Jose Antonio Gonzalez Anaya, the CEO of Pemex. He made his comments at the energy conference, CERAWeek by IHS Markit.

The company is increasing compression capacity for gas in southeastern Mexico, in the Campeche basin, Anaya said.

The company is also looking at ways to improve ethane recovery rates, he said.

Pemex is also improving its ethane storage capacity in the region, Anaya said.

“There are two or three things that we are trying to work on to increase the ethane capacity in the south,” Anaya said. “We have stabilised the supply of ethane at this point.”

CERAWeek runs through Friday.

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