Within the Mexican petroleum industry, PEMEX GAS Y PETROQUÍMICA BÁSICA occupies a strategic position.

Transcription

1 4, 3,5 3, 2,5 2, 1,5 5 3, 2,5 2, 1,5 1, , 2,5 2, 1,5 1, 5 1 Wet Gas processing (million cubic feet per day) 3,568 3,527 3,637 3,677 3,758 Natural gas Dry Gas Production (million cubic feet per day) LPG Production (thousands barrels per day) Natural Gas Domestic Sales (million cubic feet per day) 2,816 2,79 2,791 2,84 2, ,789 1,8 2,61 1,3 2,425 Within the Mexican petroleum industry, PEMEX GAS Y PETROQUÍMICA BÁSICA occupies a strategic position. This business unit of Petróleos Mexicanos is responsible for the processing, transportation, marketing and storage of natural gas and natural gas liquids. Pemex Gas is guided by the vision of Petróleos Mexicanos in which safety and the care of the environment are integral elements of the business, ones that are essential to the reliability and reputation of its operations. During 22 Pemex Gas took steps to achieve the following goals: To improve operating efficiency To carry out infrastructure improvements To meet market demand To enhance customer relations To improve its safety record To develop a strategic plan for medium and long term ad dressing timeliness, reliability and cost. p. 14,15 ANNUAL REPORT 22

2 Pemex Gas y Petroquímica Básica achieved sales of million cubic feet per day, an increase of 21.7% compared to the previous year. Natural gas processing Facilities for this central activity of Pemex Gas includes the following: 25 treating plants, 19 of which handle sour gas and 6 handle sour condensate. Total capacity in each activity is 4.2 billion cubic feet per day and 144 thousand barrels per day of condensate. 16 gas processing plants, 14 of which are cryogenic and 2 oil absorption type. Total capacity is greater than 5. billion cubic feet per day. Seven fractionating plants, wit a joint capacity of 563 thousand barrels per day. Sulfur recovery. There are 12 plants with an aggregate capacity of 3.2 thousand tonnes per day of sulfur. LPG storage. Total LPG storage capacity exceeds 2.8 million barrels, and there are 16 wholesale distribution terminals for this product. Pipelines. PGPB manages some 9, 511 kilometers of pipelines for natural gas and nearly 3, 158 kilometers for liquid products. Production In 22 Pemex Gas processed nearly 3.8 billion cubic feet per day of wet natural gas, 2.2% higher than that of the previous year. Dry gas production was 2.9 billion cubic feet per day, a gain of 4.% over 21. Output in 22 of liquids and condensates, at thousand barrels per day, however, was 5.7% less than the previous year. LPG output was 24.7 thousand barrels per day, slightly below the year before. Ethane production was 127. thousand barrels per day, and the recovery of natural gasoline was 83.8 thousand barrels per day. These levels represented a decline, of 13.7% and 5.2%, respectively compared to production levels observed in 21. Distribution and Sales The commercial strategy of Pemex Gas in 22 includes steps such as the following: Long-term supply and transportation contracts. Introduction of products and services with greater added value. Application of information technologies to meet customer needs. Consultations in relation to the development of LPG regulations. In 22, advances were seen in several areas: Greater operating flexibility in natural gas transportation between Mexico and the U.S. by means of four pipeline interconnections in South Texas, including lines of Kinder Morgan Pipeline Co. and Tennessee Pipeline Co. Natural gas was required to meet the demand of the Comisión Federal de Electricidad s 9 Independent Power Producers. The Tetco line supplied the Comisión Federal de Electricidad generation plant at Río Bravo. The 3-year hedging program for natural gas, established in 21, continued in force. As of Dec. 31, 22, Pemex Gas hedging position, which was based on a fixed reference price of 4.1 US dollars per million BTU, had earned 72.3 million US dollars. (The program, participation in which was optional, offered the customer cancellation options as well as flexibility in volume requirements. In this program, Pemex Gas assumed the risk that the market price would be above the reference price, while the customer assumed the opposite risk.) A Customer Relationship Management (CRM) program was installed to support the commercial strategies of the Company. Call Centers and Interaction Centers were established. A Supplier Relationship Management (SRM) program was established to permit better integration of procurement to respond in a timely fashion to the necessities of the company. Through these steps Pemex Gas hopes to provide an efficient service using leading-edge information technologies and assist customers with ad-

3 vanced tools to simplify processes and have access to timely and sufficient information for sound decisions. Transportation. In 22, the average volume of gas transported by Pemex Gas through pipelines was nearly 3.4 billion cubic feet per day, a volume that represented an increase of 379 million cubic feet per day compared to the previous year. In March, a new compression station was put into operation that increased pipeline transportation capacity in western markets within Mexico. As for Liquefied Petroleum Gas (LPG), total volume shipped by internal transportation systems reached, 254 thousand barrels per day, a level 42.9% less than that of 21 (at present, Pemex Gas does not itself use tank cars for LPG transportation). Demand. In 22 the internal demand for dry gas increased 21.7% in comparison to the level of 21. Sales reached 2.4 billion cubic feet per day. Of this volume, the industrial sector consumed 36.1%, the electric sector 53.3% with the remaining share going to distributors and the residential sector. In relation to the electric sector, an historic growth rate was observed in 22 with an increase demand of 28.1%. During the period August-September the demand of this sector alone exceeded, for the first time, the level of 1.4 billion cubic feet per day. The dynamic growth of natural gas demand by the electric sector is explained by the intensive use of natural gas in several of the generation stations of the Comisión Federal de Electricidad, principally ones located in the northern areas of the country. The industrial sector also increased its use of natural gas, and reduced significantly its use of highsulfur fuel oil. Pricing. Comparing 22 against that of 21, the average price of natural gas fell to 3.3 US dollars per million BTU compared to 4.3 US dollars per million BTU in the earlier period. This price change was of the order of nearly 25%. Imports. In 22 gas imports reached a level of 592 million cubic feet per day, a level 1.7% higher than those of 21. Two-thirds of these imports were through Reynosa. As for exports, realized only in January and February were some 4.4 million cubic feet per day of gas shipped to U.S. markets. LPG. The LPG market in Mexico is among the top four worldwide, and LPG is the principal source of energy for residential use. In terms of per capital consumption, the Mexican residential customer ranks first worldwide. These market conditions require that Pemex Gas serve the market with supplies that are adequate and timely, and that offer the best value in terms of quality, safety and price for the end-user. In 22, the domestic sale of LPG reached thousand barrels per day, a volume 2.2% higher than that of 21 which relects the increased demand of the residential sector. Infrastructure upgrading In 22, Pemex Gas continued its effort to improve its ability to capture value and reduce costs. Several systems were implemented: The Uptime System improves operating efficiency and helps to reduce costs. The utilization capacity increased. The SCADA system to measure and control pipelines was extended to a larger number of installations. Energy services and programs such as cogeneration, self-supply and internal transfers were undertaken. The program SSPA-Uptime is used by Pemex Gas to increase its operating efficiency. The program measures the percentage of time of operation at maximum safe capacity a given installation, piece of equipment or system is operating at its maximum safe capacity. The objective of the system is to increase the production capacity of the installations and to achieve the goal of Zero Operational Defects. The program SSPA-Uptime considers the areas p. 16,17 ANNUAL REPORT 22

4 Pemex Gas y Petroquímica Básica follows the management philosophy of Petróleos Mexicanos: workplace safety and environmental protection are core business values that must be respected. In this way we can guarantee the reliability of operations. of production, of production, pipelines pipelines and distribution and distribution terminals for each for these there are the following modules: Safety, Health and Environment (SSPA) Process Auditing (ASP) Administration and Occupational Health (SASO) Environmental Administration (SSA) Distribution Protocol. The process of implementing these modules in each of the areas takes place in 5 stages: 1. Evaluating the system 2. Developing the system 3. Establishing the system 4. Operating the system 5. Monitoring the system for continuous improvement. Investment During 22 Pemex Gas invested some 21 million US dollars in capital projects. These funds were directed principally towards) the central processing plant at Poza Rica, b) the amortization of long-term productive infraestructure projects (Pidiregas) and c) projects related to safety, environmental protection and infrastructure. Priority was given to the following projects: Poza Rica. Sulfur recovery plant in Poza Rica. It is expected that this 64 tonnes per day facility at the Poza Rica central gas processing facility will be completed in October 23. When in operation the facility will help reduce contaminating emissions. Altamira. Gas treatment plants at the new gas processing facility in Altamira known as Arenque. The project, to be in operation in 23, consists of a sweetening plant of 34 million cubic feet per day, a liquids processing plant of the cryogenic type with a capacity of 33 million cubic feet per day, and a sulfur recovery plant of 13 tonnes per day. Reynosa. At the end of 22 construction began on 2 skid-mounted cryogenic plants of 2 million cubic feet per day. The project includes a condensate stabilizer of 6 thousand barrels per day, and two fractionating towers with a combined capacity of 17 thousand barrels per day. The facilities are expected to enter into operation at the beginning of 24. San Fernando. In October 22 construction began on the 36" gas line that willbe extended from Station 19 to San Fernando. There will be two compression stations at El Caracol and Los Indios. With these facilities in operation, the natural gas transportation capacity of the northern region of the country will rise to 1. billion cubic feet per day. In this context, Pemex Gas will be better equipped to meet the demands of the Comisión Federal de Electricidad and of new clients in the region. Santa Catarina. In September 22, the modernization of the Santa Catarina Compression Station began with the replacement of existing compression units by two compressors with a capacity of 9,4 HP. As a result transportation capacity in the pipeline section Santa Catarina-Chihuahua will increase to 35 million cubic feet per day, from 25 million cubic feet per day currently. Gas supply will thereby be increased to Comisión Federal de Electricidad power plants as well as to industrial customers in the region. MEGAS. In 22 the modernization project known as MEGAS was begun. The objective is to increase the reliability of measurements in the pipeline system. Variations in the measurements of natural gas injections and deliveries will be reduced, and in this way measurements will meet the international standard. With these investments Pemex Gas maintains an active position in the marketplace as part of a strategy that visualizes, for the coming years, meeting customer requirements by continued investments in compression capacity as well as in gas transportation.

5 Safety and environmental protection During 22 the accident frequency index was 1.1 accidents per million man-hours worked, a level higher than that observed in the previous year of.5. The severity index was 114 days lost per million man-hours, 26 days higher than that of 21. In 22 there was the highest accident rate since 17. There were 26 accidents during the year, one of which was fatal. The outstanding record of Pemex Gas during the previous years shows this year s accident frequency rate to be highly unusual. The fact that the operation of LPG terminals had gone for five years without an accident suggests that it is possible to reach the goal of zero accidents. The attainment of this goal will be assisted in the measure that the safety guidelines of the SSPA program are known and followed. The discipline of industrial safety is one which Pemex Gas will have strengthened in the future to create a safety consciousness that results in a zero accident record. In relation to environmental protection, the results for 22 were outstanding. The management of the environmental impact of the operations of Pemex Gas were focused in three areas: air emissions, water discharges and toxic wastes. As part of the Program for SO 2 Reduction, in January 22 a new sulfur recovery plant went into operation at the natural gas processing facility at Ciudad Pemex. With this unit, there were 9 plants that utilized the technology Super Claus-Stork. The new plant recorded an efficiency rate above %. The conclusion of the project at Ciudad Pemex marked the completion of the first phase of the SO 2 Reduction Program. All three gas processing facilities in the Southeast of the country have reduced emissions to levels for sulfur lower than that established by the U.S. Environmental Protection Agency of 5 kilograms of SO 2 per tonne. In three centers of Cactus, Nuevo Pemex and Ciudad Pemex the SO 2 emissions were, respectively, 19, 25 and 3 kilograms per tonne of sulfur produced. In 22 Pemex Gas generated nearly 1.5 thousand tonnes of toxic residues. The program for the destruction of toxic materials reached 2.8 thousand tonnes, achieving a 77. % reduction of the total inventory. As of Dec. 31, 22 Pemex Gas had earned awards at 31 facilities for Clean Industry. Additionally, 23 centers had earned the award ISO 141. Finally, 44 facilities have earned the classification ISO 92. p. 18,19 ANNUAL REPORT 22

6