Mexico continues to open up its refined-products sector to competition, and refinery troubles at government-owned Pemex are providing U.S. refiners and motor-fuel marketers with a golden opportunity to export increasing volumes of gasoline and diesel south of the border. But transporting all those refined products to Mexican population centers and distributing them to thousands of service stations requires port and rail terminals, pipelines and storage, and Pemex has been slow in relinquishing control of its infrastructure. Today, we continue our series on efforts to facilitate the transportation of motor fuels from U.S. refineries to — and within — Mexico, this time looking at more port and rail-related projects and at existing and planned pipelines.
The final numbers for 2017 Pemex motor-fuel production are in, and the news isn’t good — unless, that is, you’re a U.S. refiner exporting gasoline and diesel. Gasoline output at Pemex’s six refineries averaged only 257 Mb/d last year, down 21% from 2016 (and 33% from 2015), and in the fourth quarter of 2017, Pemex’s output averaged a dismal 185 Mb/d. The situation is even worse for diesel: 2017 Pemex production averaged 154 Mb/d, down 29% from the previous year (and 44% from 2015), and in the last three months of 2017, Pemex diesel output fell to 103 Mb/d. U.S. exports have flooded into this void, averaging 377 Mb/d for gasoline and 232 Mb/d for diesel in the first 10 months of 2017, according to the Energy Information Administration (EIA), then spiking in November to all-time records of 655 Mb/d for gasoline and 310 Mb/d for diesel.
NGL Voyager offers subscribers a comprehensive market analysis of natural gas liquids exports which are driven by fundamentals, and combined with the latest industry buzz. The report examines U.S. export trends for propane, butane and ethane, and includes port of origin, destination and volume.
This is Part 4 of our series examining the infrastructure that helps deliver Pemex and imported motor fuels to Mexican markets. In Part 1, we discussed the points that until April 2016, Pemex was the only entity that could import gasoline and diesel to Mexico, and that until early 2017, independent/third-party importers could not use Pemex’s refined-product distribution and storage network. We also noted that competition is being introduced to Mexico’s energy markets during a trouble-filled period for Pemex’s six refineries, which has opened the door even wider to imports from the U.S. In Part 2, we provided an overview of three key elements of Mexico’s existing refined-product logistic infrastructure. First, there’s Pemex’s network, which includes refined-product pipelines with capacities totaling more than 1 MMb/d and more than 70 storage and distribution terminals with a combined storage capacity of 11 MMbbl. Then, there are the liquids storage assets owned by Mexico’s Comisión Federal de Electricidad (CFE), the state-owned electric utility, which over the next few years plans to make available to motor-fuel logistics providers at least one-quarter (and perhaps as much as half) of its 10 MMbbl of fuel storage capacity. And then there are the marine terminals, pipes, storage and other assets owned by third parties such as midstreamers, railroads and terminalling companies. Finally, we noted that Mexico’s refined-products pipeline system is far from robust, and a lot of motor fuel is transported by rail and by truck.
About the song
“Into the Void” was written by Tony Iommi, Ozzy Osbourne, Geezer Butler and Bill Ward. It appears as the fourth song on side two of Black Sabbath’s third studio album, Master of Reality. The song is in the key of C#m (aka C-minor), a step and a half lower than the standard E tuning for guitars. The band employed this tuning for the first time on this album, giving it a heavier and darker sound. James Hetfield from Metallica has said “Into the Void” is his favorite Black Sabbath song. Eddie Van Halen noted the song’s main riff as a personal favorite. Void, the Washington, DC, punk band, took their name from the song. Personnel on the record were: Ozzy Osbourne (lead vocals), Tony Iommi (guitar), Geezer Butler (bass) and Bill Ward (drums).
Master of Reality was recorded between February and April 1971 at Island Studios in London. Produced by Rodger Bain, it was released in August 1971. It went to #8 on the Billboard 200 Albums chart and has been certified 2X Platinum by the Recording Industry Association of America. One single was released from the LP. Black Sabbath bassist Geezer Butler stated that “Children of the Grave” from Master of Reality was “the most kick-ass song we ever recorded.”
Black Sabbath was a British rock band formed in Birmingham, England, in 1968 by guitarist Tony Iommi, bassist Geezer Butler, drummer Bill Ward and vocalist Ozzy Osbourne. They are considered to be the founders of heavy metal music. The band released 19 studio albums, eight live albums, 13 compilation albums, three EPs and 37 singles and have sold more than 70 million records worldwide. They are members of the UK Music Hall of Fame and were inducted into the Rock and Roll Hall of Fame in 2006. Twenty-three members have passed through the band since its formation. Founding members Osbourne, Iommi and Butler released what would be their final studio album, 13, in 2015. Brad Wild drummed on the LP. They toured on their final The End tour with drummer Tommy Clufetes in 2016-17. In July 2025, the original lineup of Black Sabbath played their final show, Back to the Beginning, in their hometown of Birmingham. The concert featured several bands along with a solo set from Ozzy Osbourne. Osbourne passed away 17 days after the last note from Black Sabbath faded out from the concert.
Ozzy Osbourne (John Michael Osbourne) was an English heavy metal singer, songwriter and media personality who was nicknamed “The Prince of Darkness.” In addition to his work with Black Sabbath, he released 13 studio albums, five live albums, seven compilation albums, five EPs and 65 singles as a solo artist. Osbourne was inducted into the Rock and Roll Hall of Fame as a solo artist in 2024 and has a star on the Hollywood Walk of Fame. He and his wife, Sharon, started Ozzfest, a highly successful heavy metal festival that ran from 1996 to 2005. It drew more than 4 million people and grossed more than $170 million over its tenure. MTV ran the successful reality television show, The Osbournes, which featured Ozzy and his family, from 2002 to 2005. Osbourne left an undeniable imprint on heavy metal music and as a media superstar. We here at RBN are saddened by the recent passing of Ozzy Osbourne and send our condolences to his family, friends, loved ones, and fans.