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Glencore to start importing fuel for Mexico in February

Published 17/08/2017, 20:12
© Reuters. FILE PHOTO - The logo of commodities trader Glencore is pictured in front of the company's headquarters in Baar
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By Ana Isabel Martinez

MEXICO CITY (Reuters) - Trading firm Glencore (L:GLEN) expects to start importing fuel for Mexico's domestic market in February 2018 through its own terminal in the southern state of Tabasco, the head of the firm's oil division, Alex Beard, said on Thursday.

"As soon as we have an opportunity to import through our own infrastructure in Tabasco, we will," Beard said at the inauguration of the first gas station branded under the franchise G500, created from a distribution partnership by Glencore and Corporacion G500, signed in May.

The fuel provided by Glencore will be ultimately sold through a large network of 1,400 gas stations operated by Corporacion G500, formed in 2014 by independent station owners in response to Mexico's energy industry reform.

G500 sells around 160,000 barrels per day (bpd) of gasoline and diesel in several states of central Mexico through existing Pemex branded gas stations, representing around 12 percent of the country's service stations.

The liberalisation of retail fuel prices in Mexico has spurred business opportunities for large refining and trading companies that want to distribute and sell imported gasoline and diesel.

U.S. refiners, including Valero Energy (N:VLO) and Tesoro Corp (NYSE:ANDV), have also announced plans to participate in Mexico's fuel market. Local mining and infrastructure company Grupo Mexico (MX:GMEXICOB) is building new terminals to discharge independent fuel imports and later distribute it by rail.

© Reuters. FILE PHOTO - The logo of commodities trader Glencore is pictured in front of the company's headquarters in Baar

State-run oil company Pemex is still the largest importer, distributor and seller of fuels in Mexico.

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