To date, the capacity of the National Refining System (SNR) does not allow it to meet the quality conditions of Ultra Low Sulfur Diesel (DUBA) . By 2019, of the six refineries that the country has, practically four were or were in the process of being maintenance or in the reconditioning phase, today the situation is not very different.

In this sense and regarding the entry into force of the update of NOM-044 (referring to emissions from diesel engines) of the Secretariat of the Environment and Natural Resources (Semarnat), which determines that starting in 2025 only market vehicles in Mexico with Euro VI and EPA 2010 technologies, Carlos Vallejo, founding partner of QUA Energy Consulting , says that the SNR is working at 40% of its capacity, although at certain times there is a production peak that sometimes helps to have certain types of oil products.

“Strictly speaking, DUBA diesel is a product that will not be able to be supplied due to the specific conditions of the six refineries in the country. What we are going to see in the future is a kind of additional extension. Although the transporters have an interest in the sale of this product, including for issues of equipment policies because some are affected because they are not respecting the guarantees because UBA diesel is not supplied,” Vallejo assured.

The specialist explained that once the new administration takes office there will be greater openness to review and make a modification to NOM-016 of the Energy Regulatory Commission (CRE) that details the quality specifications of petroleum products.

Vallejo advocates that the associations and chambers linked to road freight transportation, as well as the manufacturers of heavy commercial vehicles, have close communication ties with the institutions in charge of the issue and even with the new science and technology agency.

“This would push us to work together and get the issue unblocked, but this more than a political will, in the end the person who materializes the issue is Pemex , if the parastatal does not have the capacity to produce and supply UBA diesel, at least in geographically strategic areas. “it will not be possible to meet the objectives,” he stated.

The situation opens a window of opportunity for fuel importing companies that could import a greater quantity of UBA diesel to satisfy demand.

“Strictly speaking, the renewal of the freight transport vehicle fleet and even the growth of fleets due to the effects of nearshoring is driven to a certain extent by compliance with the standard, however, due to technical issues the SNR has not been able to achieve it. and in the short term it is not seen as a reality that it will be achieved,” he concluded.

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El cargo Diesel UBA Won’t Be a Reality in the Short Term apareció primero en T21.

The Energy Regulatory Commission (CRE) has shown remarkable progress in the fuel market during its May session. Marcial Díaz Ibarra from QUA Energy highlighted the significant achievements.

Díaz noted that in terms of structural changes, 70 modifications for change of control were approved, with the presence of BP in the market being notable.

Additionally, 34 permits for service station transfers were authorized, with a significant number granted to Oxxogas, a Mexican gasoline service provider.

Furthermore, the CRE reported that 37 new service stations have been inaugurated so far this year, totaling 187 in 2024, and 14 new penalty procedures have been implemented. However, there has been a significant complaint: the Hydrocarbons Unit and the Legal Affairs Unit are not cooperating adequately, ignoring the comments of Commissioners Walter and Luis Linares Zapata.

The LPG market has also seen a boost with 79 authorizations for sale. Additionally, 12 new laboratories were accredited according to NOM 016, strengthening supervision and quality control capacity in the sector.

Marcial Díaz highlighted that “this session was the resolution of multiple transfers, modifications, and changes of control that had been stalled since the pandemic. CRE Agreement 080, which includes a fine, has been crucial in updating and resolving these delays. This agreement establishes that permits not in compliance with regulations will be fined and updated, speeding up the regularization process and improving transparency and efficiency in the sector.”

According to Díaz Ibarra, these actions represent a good opportunity for the fuel market, although there is still much to be resolved. However, the swift steps being taken in 2024 are promising for the country’s energy sector.

Progress in these areas demonstrates a commitment to improving and revitalizing the fuel market, ensuring continuous and sustainable growth. Collaboration among different units and attention to the commissioners’ comments will be key to maintaining this pace of progress and addressing future challenges.

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El cargo Does CRE Shake Up the Fuel Market? Here Are Some Agreements apareció primero en T21.

The publication of the Mexican Official Standard NOM-043-SCT-SEMAR-ARTF-2023 in the Official Gazette of the Federation will bring changes to procedures related to the transportation of hazardous materials, impacting the transportation sector in the country.

The Ministry of Infrastructure, Communications, and Transport (SICT), in collaboration with the Ministry of the Navy (Semar), the Regulatory Agency for Rail Transport (ARTF), and the Federal Civil Aviation Agency (AFAC), has announced the promulgation of NOM-043-SCT-SEMAR-ARTF-2023. The aim of this new regulation is to enhance safety and standardize procedures related to the transportation of hazardous materials.

This regulation sets out the guidelines that transportation documents must follow to ensure the proper identification and handling of hazardous materials.

The update to this standard, which replaces NOM-043-SCT/2003, aligns with the 22nd edition of the United Nations Model Regulations. Additionally, it seeks to improve safety on federal transportation routes and facilitate international trade by standardizing processes and requirements with other countries, as explained by the NOM.

In this regard, the drafting process included a public consultation open from September 7, 2022, during which stakeholders could submit their comments. These were analyzed and discussed by the National Advisory Committee on Land Transport Standardization, culminating in the approval of the final version of the regulation.

NOM-043-SCT-SEMAR-ARTF-2023 is mandatory for all shippers, carriers, and recipients handling hazardous goods in Mexico.

Carlos Vallejo, founding partner of QUA Energy Consulting, commented that this NOM “will regulate the document that identifies what is being transported, how it is transported, where it is being transported, and the characteristics of the hazardous substance or material being moved by land, sea, and air. It will create uniformity in the type of document expected to be received by the carrier, providing certainty about what is being transported.”

There is a 180-day implementation period for the standard, with effective application by the end of this year.

Carlos Vallejo highlighted the benefits this will bring to carriers, who will have peace of mind and certainty that the party requesting the transport has declared the nature of the hazardous substance or waste in detail.

“This means the carrier is not responsible for filling out the form; the responsibility lies with the party requesting the service. This change provides more clarity and security in operations, as carriers often acted in good faith without knowing exactly what they were transporting,” Vallejo indicated.

The founding partner of QUA Energy also emphasized the importance of this standard for environmental safety, allowing for a more complete identification of hazardous substances’ characteristics, the correct type of packaging, and the identification of containers, which enhances the safety of the carrier’s operation and the users of the transport routes.

“In case of an accident, this precise identification allows for proper emergency handling, avoiding greater risks due to the lack of declaration of the transported product’s hazards,” said Vallejo.

This standard also has implications for the authorities, especially in managing air cargo at Mexico City International Airport (AICM) and Felipe Ángeles International Airport (AIFA).

Furthermore, the rail sector also participated in drafting the document, which will have customs implications due to dynamic trade with the United States, particularly at the borders of Nuevo Laredo and Ciudad Juárez.

Vallejo highlighted that this standard will benefit the transportation sector and the users of transport networks, and is also a necessary step to align with international standards and facilitate nearshoring. Additionally, cargo transport is also covered in terms of the insurance required by these standards for accident coverage.

For Vallejo, this update is seen as a necessary improvement for the dynamism of border transport after nearly 10 years. He also emphasized the importance of paying attention to its implementation and enforcement by new authorities following the elections.

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El cargo Chaos or Solution? New NOM in Mexico to “Shake Up” Hazardous Materials Transport apareció primero en T21.

The recent publication in the Official Gazette of a decree issued by the National Agency of Industrial Safety and Environmental Protection in the Hydrocarbons Sector (ASEA) has shaken the foundations of the Mexican energy sector, as it introduces substantial changes in the “administrative provisions” regulating mandatory insurance for companies operating in the hydrocarbon and petroleum sphere.

However, more than just a regulatory adjustment, these modifications represent a radical shift in the way corporate responsibility is conceived in this sector.

One of the main novelties of this decree is the elimination of minimum coverage amounts for insurance policies. Until now, regulated companies were subject to predefined liability limits, which in many cases resulted in excessive financial burden.

By allowing companies to determine their own coverage limits, either in collaboration with insurance institutions or independently, they are provided with greater flexibility to adapt to their specific needs and circumstances.

However, this freedom does not come without its corresponding responsibilities.

In this regard, Marcial Díaz Ibarra, from QUA Energy, commented to T21 that “the relevant aspects of the decree are two, the obligation to have an insurance policy for the activity carried out and that the regulated entity is responsible for the risk generated even if the amount is greater than the one insured.”

Furthermore, he explained that these provisions are necessary “to provide certainty to the areas where the regulated installations are located. The State cannot do it alone, and it is the obligation of the regulated entity to cover the damages caused.”

He added that these provisions represent a significant change in the way regulated companies manage their risks and responsibilities.

“Previously, they were limited by the minimum coverage amounts established, which sometimes did not fully reflect the level of risk involved in their operations. Now, with the freedom to determine the liability limits in their insurance policies, these companies can better tailor their risk management strategies to the specifics of their activities. This gives them greater flexibility to mitigate risks and protect both companies and the environment more effectively,” Marcial Díaz noted.

Regarding future improvements in the regulatory framework of the sector, Díaz suggested the implementation of a one-stop shop for handling procedures, which would significantly reduce regulatory burden by avoiding the repetition of processes with different agencies.

These modifications represent progress towards a more efficient and transparent regulatory framework in the hydrocarbons sector in Mexico, with significant impacts on both company operations and environmental protection and operational safety.

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El cargo Energy Sector, Revolutionized after Changes in Insurance and Corporate Liability? apareció primero en T21.