Processing and Underground Storage of Hydrocarbons

PROCESSING AND UNDERGROUND STORAGE OF HYDROCARBONS: CYDSA initiated the implementation of the Processing and Underground Storage of Hydrocarbons Business Unit, supporting its Vision for the creation of sustainable parks to store hydrocarbons in salt caverns in order to contribute to the clean, efficient and safe operation of energy in Mexico. In 2016, the Processing and Underground Storage of Hydrocarbons Business Unit focused its activities on the development and construction of the first system in Mexico and Latin America dedicated to the underground storage of Liquid Petroleum Gas (LPG) in a salt cavern.

This Project originated in 2012, when CYDSA, after many years of studies and assessments, began the development of a new area of brine extraction wells in the State of Veracruz. This initiative included the efficient drilling of brine wells, complemented with the technical characteristics to be used as storage caverns for gas and other hydrocarbons.

In November 2014, CYDSA formalized an agreement with Petróleos Mexicanos (Pemex) to develop a Project for the underground storage of Liquid Petroleum Gas (LPG) in a specifically built salt cavern. This Mexican pioneer Project is located in the State of Veracruz, near the Pajaritos seaport terminal.

The initiative encompasses the development of a salt cavern with an operating storage capacity of 1.8 million barrels of LPG, as well as the construction of surface infrastructure capable of injecting, extracting and transferring up to 120,000 barrels per day.

In April 2015, CYDSA received the permit to implement the project from the Mexican Energy Regulatory Commission (CRE). Progress during 2016 covered the construction of surface facilities, primarily operational and pumping areas, as well as the physical spaces required to transfer LPG and brine.

At the end of November 2017, CYDSA successfully began providing LP gas storage services to Pemex.

 The Energy Reform, which is currently being implemented by the Mexican Ministry of Energy, will encourage future developments of this kind in the country, taking into account the need to increase inventories of different types of hydrocarbons.

 As part of its Vision, CYDSA is considering to develop future Underground Storage of Hydrocarbons Projects with the purpose of contributing to the efficient and safe operation of the country’s industrial and energy sectors.



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