Glencore, Chevron Enter Mexico's Recently Opened Fuel Market
MEXICO CITY, Aug 17 (Reuters) - U.S. energy company Chevron Corp and trading firm Glencore on Thursday announced separate plans to enter Mexico's fuel market, as the long-hidebound sector begins to attract major foreign players.
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 liberalization 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.
Partnership
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 and Andeavor, formerly known as Tesoro Corp, have also announced plans to participate in Mexico's fuel market. Local mining and infrastructure company Grupo Mexico 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.
(Reporting by Ana Isabel Martinez, written by Marianna Parraga; Editing by Bernadette Baum and Marguerita Choy)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- USA Driving Activity to Increase to All-Time Highs
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- North America Enters Rig Loss Streak
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension