CRE Extends Deadline for Ultra-Low Sulfur Diesel Compliance

CRE has granted an extension to Pemex Transformación Industrial to comply with the Ultra-Low Sulfur Diesel (ULSD) specification as per NOM-016, which it was supposed to meet in 2018.

The Mexican regulator, led by Leopoldo Melchi Garcia, has given the subsidiary PEMEX Transformación Industrial an extended deadline to meet the sulfur content requirement, which now ends on Dec. 31, 2024. The extension was granted during a session of the governing body on Sept. 14, 2023.

The Official Mexican Standard-016-CRE-2016 establishes that conventional automotive diesel can be used throughout the country, except in the metropolitan areas of Mexico City, Guadalajara and Monterrey, where ULSD was initially required until 2018. However, the authority has been granting extensions since then.

The norm aims to reduce pollutant emissions and improve air quality, primarily in urban areas with the largest vehicle fleets, as well as in the Northern Border Region.

SENER argues that PEMEX lacks the necessary infrastructure to produce this diesel and, therefore, cannot guarantee its availability.

"Since the existing infrastructure is dedicated to producing diesel from refineries and importing to maintain supply, there is no capacity for pipeline transport, storage or port services that would allow the import and dispatch of 500 ppm diesel to ports for export," said SENER at the time.

Environmentally friendly diesel is characterized by its lower sulfur content, as per NOM-016, which stipulates that it must be less than 15 ppm, allowing for a reduction in pollutant emissions.

SENER pointed out in its 2019 resolution that, if the extension of the deadline were not authorized, it would impact the production and supply of refinery products, as it would not be possible to commercialize 500 ppm diesel in the rest of the country.

CRE also extended the deadline for PEMEX to comply with the aromatic content specification in gasoline for the Ing. Antonio M. Amor refinery in Salamanca, Guanajuato, which supplies Monterrey and Guadalajara.

Moreover, NOM-016 requires gasoline aromatics to meet a 25% threshold, while the refinery currently produces gasoline with 32% aromatics. Reducing the aromatic content helps decrease pollutant levels.