Mexico begins US ethane imports

Mexico began receiving ethane cargoes from the USA at its Veracruz Port of Coatzacoalcos on Friday, international media reported over the weekend.

Energy and commodities trader Vitol used a 10,300-tonne ethane carrier to bring the product from the Enterprise Products Partners export terminal in Morgan’s Point, Texas to the Mexican coast. More cargoes are expected under the six-month import deal, which could be extended.

The imports are intended to make up for state-owned Pemex’s shortfall in ethane supplies to domestic basic petrochemicals companies. According to Platts, “a source with knowledge of Pemex operations” says that the NOC expects ethane production to fall around 20% to 80,000 bpd in 2018.

Pemex supplies ethane to two of its ethylene plants in Cangrejera and Morelos, together consuming as much as 68,000 bpd when running at full capacity. In addition, the company is contractually bound to supply the 1.05 million-tpy Braskem Idesa Petrochemical Complex in Nanchital with 66,000 bpd of ethane to produce high- and low-density polyethylenes.