At recent conferences targeting fuel marketers and distributors in Mexico, the largest independent oil refiner in the U.S. has circulated information about its strategy, touting the supply flexibility afforded by its seven Gulf Coast refineries.

With Mexican demand for gasoline at 770,000 b/d and at 373,000 b/d for diesel (and imports representing some 70% or more of those totals), the country’s downstream market has attracted attention. May has been a busy month for new entrants.

Early in the month U.S. West Coast-focused Tesoro Corp. secured some Pemex pipeline and storage capacity in the state oil company’s first midstream open season, soon after disclosing its target of selling fuel to jobbers in Mexico by August or September.

Last week, ExxonMobil Corp. announced it was entering Mexico with a Mobil-branded retail station this year and planned to invest some $300 million over 10 years in fuel logistics, product inventories and marketing.

Valero’s plans, sources tell OPIS, include building 950,000 bbl of storage at the Port of Altamira (in Tamaulipas state) on Mexico’s east coast for regular and premium grade gasoline and for ultra-low-sulfur diesel, along with a rail car operation and a truck loading rack.

In addition, Valero envisions building fuel terminals at San Luis Potosi and Monterrey, each with fuel storage of as much as 325,000 bbl, racks and a rail facility.

During the construction of the new terminals (seen completed by the end of2018), San Antonio-based Valero is said to be counting on setting up pre-contracts to begin moving refined products into Mexico on a smaller scale so it can grow according to regional demand.

According to the My San Antonio website, citing reporting by the Mexican newspaper Milenio, Valero is also looking to license its brand to Mexican gas station owners. Valero wasn’t immediately available for comment on Friday.

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