Pemex to launch tender for ethanol acquisition in September

Friday, August 28, 2009

Mexico's state oil company Pemex will launch a tender in September for the annual supply of 176mn liters of ethanol to be mixed with gasoline and sold in the Guadalajara metropolitan area, according to a presidential statement.

A recent pilot test in the city of Monterrey distributed 151,600l of ethanol produced from sugarcane in 2.53Ml of gasoline.

The program to implement ethanol admixtures for Guadalajara will require 150mn-320mn pesos (up to US$24mn), not including preparatory studies and engineering, Pemex's CEO Jesús Reyes Heroles said last year.

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Infrastructure required for the project includes two 10,000b-capacity tanks at both the El Castillo and Zapopan storage and distribution facilities. Other infrastructure includes pumps and a mixing system in each terminal, among other things, Reyes Heroles said at the time.

Following implementation in Guadalajara, Pemex will look to expand the program to Monterrey and Mexico City.