US players enter Mexico’s retail sector

Super-major Chevron and oil marketer Glencore on Thursday announced separate moves in Mexico’s fuel retail sector.

In a statement, Chevron said it would partner with an unnamed local player to import, distribute and sell refined products. Local subsidiary Chevron Combustibles de Mexico will open its first service station in the city of Hermosillo in Sonora state “in the coming weeks.”

“We are very excited to introduce Mexico to Chevron-branded fuel, with the engine-cleaning power of Techron,” said Brant Fish, Chevron’s vice-president of Americas products. “We look forward to growing our presence further in the country.”

The company expects to open a network of stations in several other Mexican states including Baja California, Baja California Sur and Sinaloa.

Meanwhile, speaking at the inauguration of the first G500-branded service station, Glencore oil division head Alex Beard revealed that the company’s Mexico operations would begin in February 2018.

The company plans to invest USD 1 billion in storage infrastructure over the next five years so that it can receive and distribute imported refined products through terminals in Dos Bocas, Tabasco and Tuxpan, Veracruz.

Glencore and Corporación G500 entered a distribution partnership in May, under which the local firm will sell the US company’s fuel at about 1,400 service stations.

Since Mexico’s fuel retail market was opened to private participation in January 2016, the country has seen the opening of service stations under several local brands, as well as BP. Additionally, other US fuel traders such as Valero and Andeavor, formerly Tesoro, have announced intentions to begin importing refined products in Mexico.