Page 8 - NorthAmOil Week 10 2023

NorthAmOil PERFORMANCE NorthAmOil

Mexico increases imports of US MTBE in 2022

MEXICO-US MEXICO increased the amount of methyl heavily populated cities: Mexico City, Guadala-
tert-butyl ether (MTBE), a gasoline additive, jara and Monterrey.
imported from US producers last year, thereby (Mexico does import finished gasoline with
increasing its reliance on its northern neighbour MTBE already blended. However, it does not
for octane enhancement programmes. include such imports in its MTBE export statis-
According to data from Global Trade Tracker tics calculation, Argus Media said.)
(GTT) cited by Argus Media, Mexico took deliv- While Mexican demand for MTBE is
ery of 1.1mn tonnes of US-produced MTBE in expected to continue to rise in the years ahead,
2022, its highest yearly figure recorded since it will probably consist mostly of neat exports
2019. This accounted for 79% of all US exports of rather than blended product as the country
MTBE last year and was far in excess of Mexico’s boosts domestic gasoline production. Some of
2021 MTBE imports of 658,678 tonnes. this increased demand is likely to be met by a
In total, the US exported 1.35mn tonnes of newly expanded tertiary butyl alcohol plant in
MTBE in 2022, up from 978,309 tonnes in 2021. Channelview, Texas, which will be able to sup-
Mexico was easily the main destination for these port MTBE usage outside Mexico’s main metro-
volumes, followed by Chile, which absorbed politan hubs.
229,678 tonnes in 2022, and Singapore, which MTBE came into wide use within the US as
imported 38,694 tonnes, Argus Media said. an octane booster in the 1970s but was phased
MTBE is an oxygenate compound that allows out during the 2000s in favour of corn-based
more complete combustion when blended into ethanol. However, it continues to be exported to
gasoline. Due to its composition, it is appropri- foreign markets from plants along the US Gulf
ate for use in densely populated areas. Currently, Coast. Major producers include TPC Group,
US-produced MTBE is a required blending LyondellBasell, Indorama, ExxonMobil and
component for gasoline in Mexico’s three most Enterprise Products.™

Venezuela’s use of imported US naphtha rising

as shipments of Iranian condensate decline

VENEZUELA-US VENEZUELA has become increasingly depend- Venezuela’s national oil company (NOC) PdVSA
ent on naphtha imported from the US as a dilu- increase crude production. The joint ventures
ent for heavy crude oil as condensate shipments cannot use Iranian condensate because OFAC
from have declined, according to a report from rules bar Chevron from using Iranian materials.
Argus Media. Representatives of Chevron have confirmed
Citing data from the oil analytics firm Vor- that the company is probably now produc-
texa, Argus Media reported on March 2 that the ing more than 90,000 barrels per day of crude
US major Chevron had shipped around 1.57mn oil in Venezuela. (Independent observers and
barrels of naphtha from its Galena Park termi- in-country sources have put the figure at about
nal on the Texas coast to the Venezuelan port of 100,000 bpd.) The US major has said it hopes to
Jose. The company was able to start delivering bring production up to 200,000 bpd by the end
naphtha to Venezuela after securing a six-month of this year.
exemption from US sanctions in November. PdVSA had previously viewed Iranian con-
By contrast, a tanker from Iran offloaded densate as a crucial means of pushing up oil out-
about 440,000 barrels of South Pars condensate put, which has plummeted since the imposition
in January. This was the only Iranian condensate of US sanctions on the hydrocarbon sector in
cargo sent to Venezuela so far this year, and it early 2019. Caracas and Tehran signed a 20-year
marked a 78% drop on the 2mn barrels of Ira- agreement on energy co-operation in June 2022,
nian diluent delivered in January 2022. and the Iranian side sent roughly 8mn barrels
Chevron is the only US company that eligi- of condensate to Venezuela in 2022, spread out
ble to operate in Venezuela under the sanctions over four shipments.
regime imposed by the US Treasury Depart- Venezuela uses both naphtha and condensate
ment’s Office of Foreign Asset Control (OFAC). as diluents for the transportation and upgrading
Under the exemption granted last November, of Orinoco extra-heavy crude oil. Most of the
known as General Law 41 (GL 41), it is send- South American country’s petroleum reserves
ing naphtha to help its joint ventures with are very heavy and viscous.™

P8 www. NEWSBASE .com Week 10 09•March•2023