September 14, 2018 [Chron] - BP has signed a deal with a Mexican subsidiary of the San Diego energy services company Sempra Energy to supply fuel into Mexico's west coast market.
The deal between BP and IEnova, which develops, builds and operates pipelines, storage, and other infrastructure in Mexico, will give the British oil major up to 500,000 barrels of fuel storage capacity in a planned terminal in Baja California.
The space BP will lease is half of the initial capacity of the terminal; the California oil major Chevron Corp. is leasing the other half. BP has a network of 54 gas stations serving the Mexican states of Baja California and Sonora and plans to expand its network to 1,500 service stations in Mexico by 2021, according to the news release.
The agreement will also give BP the option to purchase a 25 percent ownership stake in the terminal once it is completed.
Since Mexico opened its market to competition at the end of 2013 many U.S. oil and gas companies have taken advantage of the new market, selling increasing amounts of gasoline and diesel into the Mexican market. In 2017 Mexico received 425,000 barrels of a day of finished motor gasoline, 1 131 percent increase from the 184,000 barrels a day supplied in 2013 and making it the largest export market for U.S. fuels.
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