As Mexico Deregulates Oil Industry, American Ethanol Shines

SIOUX FALLS, SD – Last week, American Coalition for Ethanol (ACE) Senior Vice President Ron Lamberty spoke at the first technical ethanol information forum to be held in Juárez, Mexico. The forums are a joint effort of the U.S. Grains Council (USGC) and the Mexican Association of Service Station Suppliers (AMPES) to inform Mexican petroleum marketers about opportunities in sourcing, marketing, and retailing ethanol-blended gasoline. In August, Lamberty moderated a panel at the Argus Mexico Fuel Markets Summit in Mexico City to discuss the role the U.S. can play in Mexico’s fuel market. As the Mexican government deregulates the petroleum market, retailers are expressing interest in incorporating ethanol blends. Now even Pemex, Mexico’s state-owned oil company, has indicated it may be interested in blending ethanol with gasoline. Last month, Pemex’s proposed budget for 2020 included $50 million toward reconfiguring terminals to handle ethanol. The original project, which Pemex shut down in 2008, called for just under 6 percent ethanol in Magna (regular) gasoline. If the oil giant uses the same equations, Pemex could be buying 50 million gallons of ethanol a month sometime late next year. About 90 percent of the stations in Mexico source their gasoline either directly from Pemex or through a Pemex distributor, and ethanol ma provide another opportunity to build and hold market share.