U.S. energy company Chevron Corp (CVX.N) and trading firm Glencore (GLEN.L) last week announced separate plans to enter Mexico’s fuel market, as the long-hidebound sector begins to attract major foreign players.
Reuters reports that Glencore expects to start importing fuel for Mexico’s domestic market in February 2018 through its own terminal in the southern state of Tabasco, according to Alex Beard, the head of the firm’s oil division.
“As soon as we have an opportunity to import through our own infrastructure in Tabasco, we will,” Beard said at the inauguration of the first gas station branded under the franchise G500, created from a distribution partnership by Glencore and Corporacion G500, signed in May.
Chevron said in a statement it will import, distribute and sell refined products in partnership with a local gas station network it did not name. The company will shortly open its first gas station in Hermosillo, in northwest Mexico.
In subsequent weeks, Chevron expects to launch outlets in the states of Sonora, Sinaloa, Baja California and Baja California Sur, all of which are in the northwest of the country.
The liberalisation of retail prices in Mexico has spurred business opportunities for large refining and trading companies who want to distribute and sell imported fuels.
The entry of big players is a boost for the government as its broad energy sector opening, which carved up state monopolies in oil, gas and electricity, begins to gain momentum.
Still, Mexico’s fuel sector is not without its challenges, including widespread theft by violent gangs, often working in collusion with the employees of state-oil company Pemex.
Glencore said its fuel will ultimately be sold through a large network of 1,400 gas stations operated by Corporacion G500, formed in 2014 by independent station owners in response to Mexico’s energy industry reform.
G500 sells around 160,000 barrels per day (bpd) of gasoline and diesel in several states of central Mexico through existing Pemex branded gas stations, representing around 12 percent of the country’s service stations.
U.S. refiners, including Valero Energy Corp (VLO.N) and Andeavor (ANDV.N), formerly known as Tesoro Corp, have also announced plans to participate in Mexico’s fuel market. Local mining and infrastructure company Grupo Mexico (GMEXICOB.MX) is building new terminals to discharge independent fuel imports and later distribute it by rail.
Pemex remains the largest importer, distributor and seller of fuels in Mexico.
more recommended stories
Expats Feel at Home in Mexico; InterNations Survey
InterNations.org recently released the results of.
Through the implementation of AMLO’s austerity plan, the government could save 132 billion pesos in 2019
As wages for high government officials.
Japanese delegation comes to Mérida to strengthen bilateral relationship
The project of the Chicxulub crater.
First house entirely made of Sargassum built by Mexican inventor in Quintana Roo
PUERTO MORELOS, Q. Roo, September 20,.
Protests in Homun, Yucatan against the opening of mega pig farm
On Friday September 21, the conflict.
Day of the Dead Parade Mexico City, three years stunning the world
For the third year in a.
Viva Aerobus announces new direct flights between Cancun and the U.S.
Viva Aerobus, the ultra low cost.
Vessel control centers urgently needed in Quintana Roo
“A control center like the one.
Photographic festival coming to Mérida in November
For the first time, the Mérida.
Trump demands a border wall but many congressional Republicans just not into it
WASHINGTON DC – President Donald Trump.