Pemex Set to Launch Ethanol Mixed Gas for 35% Lower Emissions

Pemex is set to launch its first-ever sales of gasoline mixed with cleaner-burning ethanol to reduce greenhouse gas emissions, the Mexican state-run oil company said on Thursday.

Pemex has awarded contracts to be supplied with as much as 123 million liters of ethanol per year, which will be derived from locally-produced sugar cane and sorghum.

Over the course of the 10-year contracts, the value of the ethanol purchased would range between $524 and $750 million, Pemex said in a statement.

The 5.8 percent ethanol will be mixed with Pemex’s top selling Magna gasoline brand and lower emissions by 35 percent.

Four contracts were awarded to Mexican companies on Tuesday, but tenders for two others were declared void.

A company spokesman said several more contracts will be bid out, but did not provide further details on the timeline.

The new gasoline sales will begin in the states of Tamaulipas, San Luis Potosi and Veracruz before expanding further, although the precise timing was unclear.

Pemex will invest about $58 million to build necessary infrastructure for the project at its Ciudad Madero and Minatitlan refineries.

Citing the need to cut costs due to slumping oil prices, Pemex first delayed, then canceled a planned $2.8 billion investment to boost ultra-low sulfur diesel production announced in September also designed to reduce pollution.

A sweeping energy reform finalized last year and championed by President Enrique Pena Nieto gradually ends the retail monopoly enjoyed by Pemex’s nearly 11,000 franchise gas stations scattered across the country.

Beginning in 2017, companies that operate startup non-Pemex stations will be able to import outside gasoline, and then in 2018, gasoline and diesel prices will no longer be set by the government.

(Reporting by David Alire Garcia and Ana Isabel Martinez; Editing by Bernard Orr)

Pemex is set to launch its first-ever sales of gasoline mixed with cleaner-burning ethanol to reduce greenhouse gas emissions, the Mexican state-run . . .

Follow Us On Google News | Get Our Newsletter



Trending News on PVDN

  • sargassum-slams-cancun-playa-restaurantsSargassum Crisis in Cancún and Playa del Carmen Forces Restaurants and Beach Clubs to Cut Staff Businesses in Cancún and Playa del Carmen report steep losses due to sargassum, with restaurants losing diners and beach clubs sending staff on unpaid leave. Restaurants and beach clubs along the shores of Puerto Juárez in Cancún and Playa del Carmen are grappling with a sharp downturn in business due to a relentless invasion of…
  • cancun-beaches-50-tons-sargassum-cleanupCancún beach overwhelmed by over 50 tons of sargassum in 24 hours Over 50 tons of sargassum were removed from Cancún’s Chac Mool Beach in just 24 hours, as authorities ramp up cleaning efforts across three key public beaches. Cancún’s white-sand beaches are under pressure once again as an unusually large volume of sargassum has washed ashore in the last 24 hours, disrupting tourism and triggering a…
  • cancun-hotels-sargassum-cleanup-failuresCancún government demands answers from hotels on sargassum cleanup failures Mayor Ana Paty Peralta will meet with hotel leaders in Cancún to address failures in sargassum cleanup efforts, amid growing environmental and public health concerns. The municipal government of Benito Juárez is taking a firmer stance on the growing sargassum problem in Cancún, calling on the hotel industry to explain its inadequate handling of seaweed…
  • sargassum-free-beaches-quintana-roo-summer-2025Sargassum-Free Beaches in Quintana Roo for Summer 2025, including beaches in Cancún Travelers looking for sargassum-free beaches in Quintana Roo this summer can still find clear waters in Isla Mujeres and parts of Cancún, according to updated reports. As the summer travel season ramps up, much of the Caribbean coast is once again dealing with sargassum, the brown seaweed that washes ashore in thick mats and affects…
  • puerto-vallarta-flooding-landslide-hurricane-erickHeavy rains flood Puerto Vallarta streets and trigger landslide in tunnel Flooding from remnants of Hurricane Erick paralyzed key roads in Puerto Vallarta and caused a landslide in the Luis Donaldo Colosio tunnel, Civil Protection continues damage assessment. The city of Puerto Vallarta was overwhelmed Thursday night by heavy rainfall that caused major flooding, stranded vehicles, and triggered a landslide in the Luis Donaldo Colosio bypass…
  • Body with signs of crocodile attack found in Ameca River, a leg was found last monthBeaches Closed in Nuevo Vallarta and Lo de Marcos After Crocodile Sighting Authorities temporarily close beaches in Nuevo Vallarta and Lo de Marcos after a crocodile was spotted in shallow waters. Tourists are urged to follow lifeguard guidance. Beaches in Nuevo Vallarta and Lo de Marcos were temporarily closed to the public on Friday, June 20, after a crocodile was spotted swimming close to shore, prompting swift…
  • bus-crashes-canal-puerto-vallartaBus crashes into canal in Puerto Vallarta’s 5 de Diciembre neighborhood A public transport bus crashed into a drainage canal in Puerto Vallarta’s 5 de Diciembre area. Authorities responded quickly, and no serious injuries were reported. A public transport bus veered off the road and plunged into a stormwater canal early Thursday morning in Puerto Vallarta’s 5 de Diciembre neighborhood, sparking concern among locals but leaving…
  • heavy-rain-flooding-landslides-puerto-vallartaTrash-Choked Drains Make Puerto Vallarta Flooding Worse During Heavy Rain Overflowing storm drains clogged with garbage are fueling flooding in Puerto Vallarta, officials warn, as rains bring chaos to multiple neighborhoods. As heavy rain swept across Puerto Vallarta Thursday night and into Friday morning, flooding was widespread—but officials say much of the chaos was avoidable. The city’s stormwater drains, overwhelmed not just by rainfall but…
  • Know your consumer rights in Mexico Is it legal for restaurants to include the tipPuerto Vallarta restaurants face 33 percent staff shortage Restaurants in Puerto Vallarta face a 33% staffing shortfall as they prepare for a busy summer holiday season, aiming to boost sales by up to 60% despite ongoing labor challenges. As Puerto Vallarta prepares to welcome a surge of summer tourists, the city’s restaurant sector is grappling with a serious staffing problem—operating with roughly one-third…
  • tropical-storm-erick-warnings-mexico-coastHurricane Erick will bring heavy rains to Puerto Vallarta Hurricane Erick Puerto Vallarta will bring heavy rains to Puerto Vallarta by Friday but poses no risk to the northern coast of Jalisco. Meteorologist Víctor Manuel Cornejo López, of the Civil Protection scientific committee for the Bay, reports that Hurricane Erick will deliver significant rainfall to Puerto Vallarta without threatening the region’s safety. According to…
Scroll to Top