Last week, I had the pleasure of speaking on a panel at the Mexico Gas Summit here in San Antonio. Many thanks to Jay Applewhite and his team for putting on such an outstanding event. The annual conference was created following the Mexican government’s historic decision to overhaul the country’s energy sector and open the market to private investment. Now in its third year, the 2017 summit reflected a market that has matured significantly since that decision.
Much has been reported on Mexico in recent weeks, and investment in the country’s newly opened fuels market continues to grow. Local players Valero and Tesoro are making headlines with long-term logistics plays. Meanwhile, BP and ExxonMobil are moving ahead with retail stores in major metropolitan areas.
Indeed, interest in Mexico is as high as it’s ever been. With that said, tremendous opportunity remains as larger companies continue to evaluate investments in major projects while the market develops. Pricing and transparency are the biggest hurdles to an efficient open market, but with full deregulation scheduled to take effect on January 1, 2018, increased export volume will be soon to follow.
If the Mexican market is not quite mature, you wouldn’t know it to look at our terminal at the Port of Brownsville. We’re currently seeing a surge in historically less regulated diesel. Combined with the flexibility of truck and rail servicing, we’re well positioned to supply retailers and wholesalers in Matamoras, Reynosa, and Monterrey for the foreseeable future.
Just miles from the U.S.-Mexico border, our 150,000 bbl terminal is ideally situated to serve the northeast quadrant. What’s more? We are continuing to expand our storage and handling capabilities, adding more tanks and increasing our rail and truck loading spots. Our leased acreage position will accommodate up to one million barrels of refined product storage. Truly, it’s an exciting time to be in Mexico, and it won’t be long until this learning curve starts to look more like the crest of the wave.
Are you looking for a terminal for refined fuels en route to Mexico? We’d love to talk to you. Head over to the contact page and send us a message, or better yet, just give us a call.
All the best,