Last July, we discussed the Mexican government’s decision to deregulate the country’s retail fuels market. Six months later, the future of this tremendous opportunity is beginning to take shape.
When Mexico’s Energy Ministry announced that private parties would be allowed to supply gasoline and diesel to Mexico, it signaled the end of the country’s longstanding state monopoly on retail fuels. Prior to this, all refining, importing, and exporting was overseen by Mexico’s state-operated oil company, Pemex.
However, limited by waning domestic production and archaic infrastructure, Mexico can no longer satisfy its growing demand for refined fuel—and as one of the world’s largest consumers, the country will be reliant on imports. American firms now have the opportunity to play a significant role in making up this shortfall.
In order to better support the domestic firms that will serve this emerging market, One Cypress Energy is pleased to announce that we have partnered with Bluewing Midstream to expand our presence at the Port of Brownsville. Operating as Bluewing One, we have received approval to lease several additional acres at the port, where we will construct five high-capacity storage tanks.
The $50 million project will increase our total capacity by nearly 400 percent; from 120,00 barrels to 615,000 barrels. We expect that the new tanks will be operational within one year after groundbreaking.
Brownsville’s strategic location just nine miles from the Texas-Mexico border makes it an attractive center for trade. Furthermore, the port soon will be able to accommodate larger vessels, as Congress recently approved a measure to deepen the Brownsville ship channel to 52 feet.
As one of the first movers in storage and logistics serving the Mexican market, Bluewing One is equipped to be your preferred partner in south Texas. Contact us today to get a quote for bulk liquid storage at the Port of Brownsville.