News & Ideas

ACE returns to Mexico in 2019 to address ethanol questions from service station owners

Sioux Falls, SD (February 22, 2019) – American Coalition for Ethanol (ACE) Senior Vice President Ron Lamberty traveled to Mérida, Mexico, this week for the first ethanol technical information forum held in 2019 for Mexican petroleum equipment installers and retailers. The forums are a joint effort of the U.S. Grains Council and the Mexican Association of Service Station Providers (AMPES), to inform Mexican petroleum marketers about opportunities in sourcing, marketing, and retailing ethanol-blended gasoline, as Mexico’s transportation fuel sector continues to evolve. 

“These workshops continue to help more Mexican fuel marketers, equipment suppliers, and some government officials understand offering gasoline with 10 percent ethanol is a safe and economically sensible way to have cleaner air and provide less expensive options at the pump for drivers in Mexico,” Lamberty said. “‘The math’ of ethanol blends is undeniably attractive for station owners and consumers right now, and our goal this year will be helping businesses learn how they can obtain and transport our product to places where it can be blended and delivered to stations. Fuel equipment companies say the workshops have inspired interest from retailers and prospective wholesale distributors of ethanol.” 

Located in the northwest part of the state of Yucatán, Mérida receives gasoline shipments at the port of Progresso, about 25 miles from the city. A private company is building a fuel receiving terminal at the port, and owners of the new facility attended the workshop.

“Pemex has an older refined products terminal there, and the owners of this new terminal say they’re building it recognizing it could be an attractive upgrade for the Mexican oil company, as well as U.S. refiners right across the Gulf of Mexico,” Lamberty said. “At the forum, I pointed out the economic advantages to bringing in ethanol as well, since it could lower costs and increase octane for any refiner who wants to start blending in the Yucatán.

“Government officials have also expressed interest in more ethanol in the Mexican fuel marketplace to address the country’s gasoline shortage, reduce the cost of fuel, and combat illegal fuel theft through gasoline pipeline tapping,” Lamberty added. 

Lamberty’s 2018 travels to Mexico included visits to Mexico City in November, Xalapa in August, Chihuahua in July, León in June, and two workshops in the spring to Monterrey and Tijuana. Interest and attendance increase at each event, and ACE will continue to work with the USGC to provide information to retailers and others who want to sell more ethanol. Attendees of Commodity Classic next week can learn more about these efforts at ACE’s booth #2184 during the event.

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