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Shell opens first Mexico gas station, eyes up to $1 billion investment

Published 05/09/2017, 19:11
Updated 05/09/2017, 19:20
© Reuters. A Shell logo is seen reflected in a car's side mirror at a petrol station in west London
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MEXICO CITY (Reuters) - Anglo-Dutch oil major Royal Dutch Shell (LON:RDSa) opened its first gas station in Mexico on Tuesday, adding to a growing list of foreign-branded pumps in a market still dominated by the green-coloured outlets of state-owned company Pemex.

Following a 2013 constitutional energy overhaul that ended Pemex' decades-long monopoly, private companies can now brand gas stations and sell non-Pemex brand gasoline and diesel, as well as import fuels.

The opportunities are huge for the private sector in the fuel market of Latin America's second-biggest economy, with Mexico now one of the world's biggest gasoline consumers and the top foreign importer of U.S. gasoline.

Shell said in a statement it plans to open an unspecified number of additional service stations and that investment in Mexico's fuel sector could reach about $1 billion (£0.76 billion) over the next decade "if current market conditions are maintained."

The company's inaugural gas station, which also features a convenience store, is located in a northwestern suburb of the sprawling Mexican capital.

Shell, which in June won a shallow water exploration and production contract along with France's Total, operates more than 43,000 gas stations in some 80 countries worldwide.

© Reuters. A Shell logo is seen reflected in a car's side mirror at a petrol station in west London

Mexico boasts some 11,400 gas stations, the vast majority of which remain Pemex franchises.

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