Clean Fuels Program

1
Clean Fuels Program
José Antonio Ceballos
July 14, 2009
2
Contents

• Pemex Refinación
• Tendency of Fuel Demand in Mexico
• Relevant Factors that Promote Clean Fuels in
  Mexico
• Pemex Refinación Strategy
• ULS Gasoline Diesel Supply
• Final Remarks

3
Pemex Refinación
Objective To guarantee, in an efficient way, the
total hydrocarbon supply that the country needs.

• Based on its processing nominal capacity of 1,540
  KBD, Pemex Refinación reached the 13th place
  among the refining businesses in the world in
  2008.
• Mexico was the 10th country in hydrocarbon
  consumption in 2006, with a total volume of 2,078
  KBD.
• The value of the total sales in 2008 amounted to
  65.54 billion USD (equivalent to 8.3 of GDP).

4
Pemex Refinación

• Salamanca
• 245 KBD
• FCC Lubes

• Cd. Madero
• 190 KBD
• Coker

• Cadereyta
• 275 KBD
• Coker

• Total PR
• 1,540 KBD
• 6 refineries

Infrastructure

• Tula
• 315 KBD
• FCC Alky

• Minatitlán
• 185 KBD
• FCC

• Salina Cruz
• 330 KBD
• FCC Alky

5
Mexican Fuel Demand Forecast

• Gasoline demand will continue to grow at an
  annual rate of 3.4 for the following 8 years.
  However, it shows a reduction of 0.1 between
  2008 and 2009, due to the world economical
  crisis.
• Diesel will continue growing at a rate 4.5 on
  average up to 2012, and 3.5 average onwards. In
  2009 the estimated decrement is 9.3.
• Fuel Oil demand will decrease from 191 KBD to 119
  KBD during 2009 to 2017, mainly due to
  substitution to gas on thermoelectric units.

(KBD)
6
Relevant Factors that Promote Clean Fuels in
Mexico

• National international environmental protection
  rules
• New technologies on motors for better combustion
• Availability of heavier crude oils with higher
  concentration of process pollutants (sulphur,
  nitrogen and metals)
• More profitability margins through residual
  conversion
• International market standardization of fuels
• Climate Change Initiatives

7
Pemex Refinación Strategy

• To guarantee the provision of distilled, to solve
  the excess of fuel oil and to contribute in the
  energetic security for the country

Program to improve the performance and
reliability of distribution systems Increase
transport capacity
Program to improve performance and operative
reliability in refineries
Program to improve the performance and
reliability of storage systems and local
delivery
Program to modernize commercial process
1
4
6
7
Strategic program to increase distillates
production
2
5
Supply of fuels with low environmental impact
3
7
8
Supply of fuels with low environmental impact
Clean Fuels Program
9
Supply of fuels with low environmental impact
Clean Fuels Program
Estimated Investment 2,300 MMUSD
Estimated Investment 4,200 MMUSD
Investment is focused on meeting Federal
Environmental Regulations (Mexico)
10
Process Configuration Diagram
Atmospheric distillation
C5-C6 Isom Unit.
Crude oil
HDS gasoline
Catalytic Reforming
Gasoline 30 ppm
Vacuum distillation
HDS (Turbosine and Querosine)
Jet Fuel Kerosine
HDS (Diesel)
Coker unit
New HDS MD
Diesel 15 ppm
HDS Gasoline FCC
FCC
HDT Heavy Gasoil
FCC
Revamp (18 H-Oil)
New plants (8)
Currently plants
New plants (4)
11
Key aspects of the Clean Fuels Program

• Changes in six refineries and the national
  storage and distribution System
• The revamp and integration of new units should be
  coordinated with the maintenance programs to
  avoid negative effects in the production program.
• The sulfur level for the gasoline will be of 30
  ppm average and for the diesel 15 ppm maximum
  present values are 300 ppm average for gasoline
  and 500 ppm average for diesel.
• Implement best practices in project management
  and construction

12
Present Infrastructure for the Phase Gasoline
Pre treatment
LG Light gasoil HG heavy gasoil

• Low capacity of pre treatment of feedstock to FCC
  
• In three refineries the HDS unit processed
  mixture of light and heavy gasoil from coker
• Improves the performance of FCC unit.
• More expensive than pre-treatment

Post treatment No unit in Pemex Refinación.
13
Present Infrastructure for the Phase Diesel
Main characteristics of Present Diesel HDS Units

• Only the U-24000 of Minatitlan was designed to
  produce DULS(15 ppm of sulfur)
• 3 additional units will be minor revamps to
  produce DULS (U-700-2 of Cadereyta, and HDD from
  Tula and Salamanca)
• 16 Units need deep revamp to reach the required
  severity to produce DULS

jjj SRGStraight run gasoil, CGO Cyclic gasoil
from FCC, LCG Light coker gasoil
14
Final Remarks

• The clean fuels project is a priority for PEMEX
  Refinación
• There is a NOM-086 which establishes the
  specifications of the clean fuels
• The strategy of the project assures the supply of
  clean fuels to the country
• The production and import of fuels allow to cover
  the demand of gasoline and diesel according to
  the following timetable