Mexican Diesel Fuel/Sulfur Effects Update
Much to my distress I just learned here in the Southern Baja that the owner of a late model GM diesel pickup paid almost $3,000 to ship his truck back to the USA when it went into limp mode (5 mph) in...
Forum Discussion
The "news" from PEMEX is wishful thinking I'm afraid. Look at how long it took the USA to provide ULSD throughout the country. Having visited a Mexican refinery for three days I can assert that they are in no manner or form "ready" for the multi-billion dollar process equipment upgrades necessary to start refining product.
The 2-year old "We Are Almost Ready To Start Producing Ultra Low Sulfur Premium Gasoline" announcement is still hanging in thin air. Salina Cruz and Queretaro are NOT producing ULSG as of this writing. Mexico is UNABLE to manufacture tanks, vessels and process equipment that can handle high pressure hydrogen, caustic soda, and other elements vital to reduction of sulfur in product. Vessels have to be imported and engineering services like provided like USA's FLUER CORPORATION are demanded. Critical gamma X-ray inspection equipment is lacking.
And now a currency that has lost important percentage points against the dollar and Euro hinder the conversion process. Latest gossip has PEMEX negotiating with the Japanese for engineering and vessels.
But with smog and particulate contamination rising to intolerable levels in Mexico (City) mandates are in place guaranteeing that every last drop of Mexican refined ULSD will be directed to replace existing diesel until every last drop of LSD disappears from Mexico THE CITY and Mexico THE STATE.
There is NOT ENOUGH ULSD produced in the USA to satisfy more than one or two percentage points of what Mexico needs to convert. Not even enough for Mexico City and the cost of transport would crush PEMEX.
It's nuts. The cost of transport is SO EXPENSIVE to haul fuel from the mainland to Baja California (the northern state) and the SHORTAGE of ULSD in the USA so pronounced, that Mexico, at times, must purchase ULSD from JAPAN, and that fuel is unloaded at the Rosarito offshore terminal just north of Ensenada. Wanna hear something juicy? Much of the imported Japanese diesel has ZERO parts per million sulfur. Not detectable. Japanese diesel as purchased by Mexico has a to date maximum of 7 PPM
The 2-year old "We Are Almost Ready To Start Producing Ultra Low Sulfur Premium Gasoline" announcement is still hanging in thin air. Salina Cruz and Queretaro are NOT producing ULSG as of this writing. Mexico is UNABLE to manufacture tanks, vessels and process equipment that can handle high pressure hydrogen, caustic soda, and other elements vital to reduction of sulfur in product. Vessels have to be imported and engineering services like provided like USA's FLUER CORPORATION are demanded. Critical gamma X-ray inspection equipment is lacking.
And now a currency that has lost important percentage points against the dollar and Euro hinder the conversion process. Latest gossip has PEMEX negotiating with the Japanese for engineering and vessels.
But with smog and particulate contamination rising to intolerable levels in Mexico (City) mandates are in place guaranteeing that every last drop of Mexican refined ULSD will be directed to replace existing diesel until every last drop of LSD disappears from Mexico THE CITY and Mexico THE STATE.
There is NOT ENOUGH ULSD produced in the USA to satisfy more than one or two percentage points of what Mexico needs to convert. Not even enough for Mexico City and the cost of transport would crush PEMEX.
It's nuts. The cost of transport is SO EXPENSIVE to haul fuel from the mainland to Baja California (the northern state) and the SHORTAGE of ULSD in the USA so pronounced, that Mexico, at times, must purchase ULSD from JAPAN, and that fuel is unloaded at the Rosarito offshore terminal just north of Ensenada. Wanna hear something juicy? Much of the imported Japanese diesel has ZERO parts per million sulfur. Not detectable. Japanese diesel as purchased by Mexico has a to date maximum of 7 PPM
