Fuel Terminal Built to Service Valero EnergyBy Pamela Benítez | Tue, 10/12/2021 - 18:44
MEXPLUS Puertos is set to invest US$200 million to construct Mexico´s most modern fuel terminal to service Valero Energy, the leading US refiner and one of the world’s largest fuel producers. This project promises a high-quality product in northern Mexico through a supply-led strategy against competitors’ brand-led approach.
Valero´s new fuel terminal is backed by Mexican financing companies ABC Leasing and FinBe. The terminal is expected to have a storage capacity of 1.1 million barrels and a location in the highly-valued Tamaulipas-based Port of Altamira, considered a domestic and foreign investment attraction. This strategic region will also allow the terminal to connect with other already-existing or to-be-built marine terminals.
"The only fuel distribution network, in addition to that of PEMEX, is the one we are building for Valero Energy. It is a distribution network with two entry points, Veracruz and Altamira, which will be directed to various distribution centers by land towards different areas of the country," said David Maya, Finance Director of MEXPLUS Puertos, a pioneer company in the development of private marine terminals in Mexico.
Valero, a Fortune 500 company, is one of the world’s largest refiners. It has over 40 years in operation and 15 refineries worldwide with a total production of 3MMboe per day, creating 10,000 jobs.
Carlos García, General Manager of Valero Energy México, explained to MBN why Valero entered Mexico, as well as the reasons behind the new refined product terminal in Altamira.
“Among our business opportunities in Mexico is to supply the country with proprietary barrels. This means, barrels coming out of our refineries and moving through a logistics system entirely under our control, in order to deliver a high-quality product in a reliable fashion. In this sense, our move into Mexico was a supply-led strategy rather than a brand-led strategy that many downstream companies have when entering the country,” told García to MBN.
García also explained that the terminal in Altamira is meant for the distribution of proprietary barrels to northern Mexico and that it is part of the seven terminals that the company plans to construct in the country, however, he clarified that Valero is neither the owner nor operator of the terminals.
“Mexico is an extremely important market for Valero and it is the first market the company has entered from scratch […] we want to be world-class and remain in Mexico for the long term,” said García.
Construction of the new fuel terminal began in July and is expected to initiate operations during the first quarter of 1Q23. The Altamira Port project has attracted domestic and foreign investment from shareholders interested in having participation in the growth of the Mexican industry, as the port is considered to be a hub of commercial development in the country.
For more than 30 years, the Port of Altamira has ranked first in the movement of petrochemical fluids, while also ranking second in automobile handling across the Gulf of Mexico and placing fourth place in the total movement of cargo and containers at national level, making it one of the four most important ports in the country. For this project, MEXPLUS Puertos promotes and develops port dockers in association with domestic and foreign investors.
MEXPLUS Puertos created the Marine Terminal Operator (OTM), which stores chemicals, petrochemicals, and derivatives, and is the terminal with the greatest potential in the country, especially on the Gulf-side, according to founder and General Director, José Terrones. This company also created the Altamira Maritime Terminal (TMA), which is oriented towards agriculture, minerals, and bulk solid chemicals. Both the OTM and the TMA are important links in Mexico’s foreign trade.