Tesoro Signs Deal with Pemex to Enter Mexico
Tesoro Corp., which will become known as Andeavor Aug. 1, has reached a definitive agreement with Petróleos Mexicanos (Pemex) for terminaling and transportation services in Mexico, the San Antonio-based independent refiner announced Tuesday.
"The expansion of our strategic footprint to include Northern Mexico strengthens our integrated value chain with significant growth opportunities for our marketing business," Tesoro Chairman, President and CEO Greg Goff said in a company statement. Under the agreement, Tesoro will supply transportation fuels in the Mexican states of Sonora and Baja California.
According to Tesoro, the company gained capacity in the open season for Northwest Mexico on Pemex's oil products pipeline and storage terminals earlier this summer. In addition, it stated the now-signed final deal will soon enable it to move products in the country.
Tesoro, which operates 10 U.S. refineries boasting approximately 1.2 million barrels per day of capacity, noted that it expects to integrate supply to Mexico with its West Coast Refining and Logistics system and market products under the ARCO brand.
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