The commercial relationship between the state-owned Pemex and CFE grew during the last year. The national electricity company increased the volume of fuel oil it acquires from the oil giant during 2021, according to the latest financial statements of the companies.
Fuel oil, the main product of the six refineries of the national oil company and its dirtiest fuel – due to its high sulfur content – is used by the state-owned CFE in its thermoelectric plants.
But the volume used by the second company had decreased in recent years. From 2017 to 2020, the trend had continued downward, with a special reduction during 2020 derived from the drop in electricity demand and the greater use of natural gas, wind and solar power plants.
But the volume used by the second company had decreased in recent years. From 2017 to 2020, the trend had continued downward, with a special reduction during 2020 derived from the drop in electricity demand and the greater use of natural gas, wind and solar power plants.
The latest data released in Pemex’s financial statement shows that during 2021 it sold 78,100 barrels of fuel oil per day to the domestic market. The figure is a significant increase compared to a year earlier, when it sold 55,200 barrels per day, but the latter was an atypical year derived from the start of the Covid-19 pandemic.
And compared to 2019, the last year with typical behavior, the volume of fuel oil marketed by the state company recovered an upward trend, after at least three years with pronounced declines. In 2019, the oil company sold 76,500 barrels per day.
CEnergÃa, a subsidiary of the state power company, is Pemex’s main client in its fuel oil segment and its purchases represent around 88% of the state power company’s sales, according to financial statements.
The two state companies have had a fuel oil marketing contract since November 2017 and last year they reached a commercial agreement to exchange natural gas and fuel oil, according to the minutes of the oil company’s council sessions, but no further details were revealed. for being part of the commercial strategy.
The increase in the commercialization of fuel oil has favored the income of the oil company. Sales of the product to Pemex resulted in 15,548 million pesos last year, an increase of 131% compared to 2020, driven by a growth in the displaced volume and the rise in international oil prices that are transferred in a way almost parallel to the rest of the derived products.
The sale of the product benefits the state oil company, since fuel oil has become the main refined product that comes out of its complexes, above gasoline and other higher value products. In its latest financial statement, the company says that 30% of the production in its refineries is fuel oil.
The displacement of this product had occurred organically in recent years due to the entry into operation of some wind and solar projects resulting from the electricity auctions of the energy reform that displaced the plants of the state-owned CFE, which resulted in higher costs. like thermoelectrics.
But the new dynamics of the electricity market, which has led to greater use of some CFE plants, could have influenced the upturn in sales from Pemex.
