Andeavor Seeks to Cut Cost of Importing Fuels to Baja California



Andeavor plans to build a refined products terminal at the Rosarito storage facility owned by Comision Federal de Electricidad (CFE) in the Mexican state of Baja California, the San Antonio, Texas-based refiner announced Wednesday.

“The expansion of our branded business in Mexico allows us to further expand our integrated West Coast value chain into this attractive and high growth geography,” Greg Goff, Andeavor’s chairman, president and CEO said in a written statement. “This logistics project will further strengthen Andeavor’s ability to cost effectively deliver gasoline and diesel to our customers directly from our refineries on the West Coast.”

According to Andeavor, it will sign a long-term lease with CFE subsidiary CFEnergia for the land so that it can construct and operate the facility. The company also said that it expects the estimated $100 million infrastructure project – located south of Tijuana – to reduce its cost to directly import fuels into Baja California while supporting its expanding network of ARCO-branded retail outlets and other customers in Northern Mexico.

Pending required regulatory approvals and permits, the Rosarito facility redevelopment could conclude in two years, Andeavor stated.

Known as Tesoro until August 2017, Andeavor operates 10 refineries with a total processing capacity of roughly 1.2 million barrels per day. The facilities are located in the mid-continent and western regions of the United States. Andeavor also boasts a retail-marketing network comprising more than 3,300 stores operating under various brand names. This past April, Marathon Petroleum Corp. (MPC) announced definitive plans to acquire all outstanding shares of Andeavor. MPC has stated that it expects the merger to close during the second half of this year.



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