Mexico to issue tender for ethanol production

Eric Watkins
OGJ Oil Diplomacy Editor

LOS ANGELES, Aug. 28 -- Mexico’s state-owned Petroleos Mexicanos (Pemex) will invite tenders next month for a contract to produce 176 million l./year of ethanol, according to a senior government official.

Energy Secretary Georgina Kessel said the bidding round, which will be concluded in December, aims to promote ethanol as a transportation fuel as part of a wider plan by the government to reduce pollution and diversify the country's energy mix.

Kessel told delegates at a conference that the plan will help reduce the amount of pollutants released into the atmosphere while also guaranteeing the development of Mexico's food industry.

She said the project will first be carried out in the western state of Jalisco, with 65,000 ha of sugarcane to be used as feedstock in producing up to 176 million l./year of an ethanol-gasoline blend.

The project is being launched after a successful test-run last month in Monterrey, where 151,600 l. of sugarcane-based ethanol were added to gasoline at retail outlets, with 2.53 million l. of the blend sold to consumers.

According to Finance Secretary Agustin Carstens, the production of biofuels will not endanger ecosystems or food security in Mexico contrary to warnings issued by several nongovernmental organizations concerned over the use of corn—a dietary staple of the Latin American country—as feedstock.

"In Mexico, there's an agricultural zone potentially suited for the production of raw materials for ethanol production, especially sugarcane, sweet sorghum, and beets, with no risk to the country's food security or to jungles, forests, and the remaining natural ecosystems," Carstens said.

The finance secretary said other bid rounds will be announced before yearend for Monterrey and the Mexico City metropolitan area. Carstens said 126 million l./year of ethanol will be required to support those initiatives.

In 2008, Mexico enacted a law to promote and develop the use of biofuels, which also calls for production of ethanol from different sources, including algae, sugarcane, and corn.

In addition, the law also allows for the production of ethanol from waste leftover from sawmills, as well as agroindustrial and urban waste and traditional agriculture and forest residues.

Mexico hopes that biofuel production will enable Pemex to reduce its imports of gasoline which, in May, accounted for 39.2% of sales in the country during the second quarter compared to 40.5% year-on-year. In terms of volume, gasoline sales totaled 784,364 b/d compared to 798,249 b/d year-on-year.

Contact Eric Watkins at

Related Articles

Puma Energy completes purchase of Murco’s UK refinery, terminals

07/02/2015 Singapore-based Puma Energy Group Pte. has completed its purchase of UK midstream and downstream assets from Murco Petroleum Ltd., a subsidiary of ...

SIBUR plans MTBE expansion at Togliattikauchuk

07/01/2015 Russian conglomerate OAO SIBUR Holding, Moscow, has started preparatory work for a project designed to expand production capacity for methyl tertia...

OxyChem-Mexichem JV lets contract for ethylene storage

06/30/2015 Ingleside Ethylene LLC, a 50-50 joint venture of Occidental Chemical Corp. (OxyChem) and Mexichem SAB de CV (Mexichem), has let a contract to CB&am...

RIL’s Jamnagar refinery due maintenance

06/29/2015 Reliance Industries Ltd. (RIL), Mumbai, is planning to shut down a crude unit for scheduled maintenance at its 1.24 million-b/d Jamnagar refining a...

OGJ Newsletter


BP: US surpassing Saudis in oil output among world's 'tectonic' energy shifts in 2014

06/29/2015 An eventful 2014 in the world oil and gas markets was headlined by the US overtaking Saudi Arabia as the world's biggest oil producer and surpassin...

Gazprom Neft lets contract for Moscow refinery

06/29/2015 Russia's JSC Gazprom Neft has let a contract to Tecnimont SPA, a subsidiary of Maire Tecnimont SPA, Milan, for engineering, procurement, and constr...

Marathon commissions unit at Kentucky refinery

06/29/2015 Marathon Petroleum Corp. (MPC) has commissioned a 35,000-b/d condensate splitting unit at its 242,000-b/d Catlettsburg, Ky., refinery to boost the ...

Petronas lets contract for RAPID complex

06/26/2015 Malaysia’s state-run Petronas, through a contractor, has let a contract to Industrial Cooling Solutions Inc. (ICS), Lakewood, Colo., to build a 28-...
White Papers

UAS Integration for Infrastructure: More than Just Flying

Oil and gas companies recognize the benefits that the use of drones or unmanned aerial systems (UAS) c...

Solutions to Financial Distress Resulting from a Weak Oil and Gas Price Environment

The oil and gas industry is in the midst of a prolonged worldwide downturn in commodity prices. While ...
Sponsored by

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by
Available Webcasts

Operating a Sustainable Oil & Gas Supply Chain in North America

When Tue, Oct 20, 2015

Short lead times and unpredictable conditions in the Oil & Gas industry can create costly challenges in supply chains. By implementing a LEAN culture of continuous improvement you can eliminate waste, increase productivity and gain end-to-end visibility leading to a sustainable and well-oiled supply chain.

Please join us for this webcast sponsored by Ryder System, Inc.


On Demand

Leveraging technology to improve safety & reliability

Tue, Sep 22, 2015

Attend this informative webinar to learn more about how to leverage technology to meet the new OSHA standards and protect your employees from the hazards of arc flash explosions.


The Resilient Oilfield in the Internet of Things World

Tue, Sep 22, 2015

As we hear about the hype surrounding the Internet of Things, the oil and gas industry is questioning what is different than what is already being done. What is new?  Using sensors and connecting devices is nothing new to our mode of business and in many ways the industry exemplifies many principles of an industrial internet of things. How does the Internet of Things impact the oil and gas industry?

Prolific instrumentation and automation digitized the industry and has changed the approach to business models calling for a systems led approach.  Resilient Systems have the ability to adapt to changing circumstances while maintaining their central purpose.  A resilient system, such as Maximo, allows an asset intensive organization to leverage connected devices by merging real-time asset information with other critical asset information and using that information to create a more agile organization.  

Join this webcast, sponsored by IBM, to learn how about Internet of Things capabilities and resilient systems are impacting the landscape of the oil and gas industry.


Taking the Headache out of Fuel License and Exemption Certificates: How to Ensure Compliance

Tue, Aug 25, 2015

This webinar, brought to you by Avalara, will detail the challenges of tax document management, as well as recommend solutions for fuel suppliers. You will learn:

-    Why it’s critical to track business partner licenses and exemption documents
-    The four key business challenges of ensuring tax compliance through document management
-    Best practice business processes to minimize exposure to tax errors


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!


Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected