Rubén Cortina
Managing Director
Tarsco México
View from the Top

Betting on Gas and Diesel Storage Demand

Sun, 11/12/2017 - 08:55

Q: How is Tarsco focusing its efforts in the current midstream environment?

A: The private companies for storage are the new players and are our main target because for the moment there is no infrastructure owned by private businesses; the existing infrastructure is all owned by PEMEX. Our goal is to participate with the new players on the basis of our experience and knowledge. Some of these are not only developers; they have a very strong organization behind them and they know precisely what they want. There are projects in the Gulf of Mexico and in the Pacific that are in the development stage. The companies developing these projects are not inexperienced companies; they are players who know what they want and know what they need. Those are our most important targets.

Q: Are there any particular kinds of liquids or gasses that typify the market that Tarsco wants to focus on?

A: Our workshop in Mobile, Alabama, and our experience give us a very wide market coverage, up to building spheres for LPGG and ammonia. We also build cryogenic tanks for different kinds of gasses and we have our own workshop to build atmospheric tanks for gasoline and diesel. We can provide a full service for a great variety of products, including natural gas, for which we have very efficient solutions.
That said, the gasoline and diesel market has been growing strongly since the market was opened up, after first being held exclusively by PEMEX. This means that the market can now provide solutions for fuels from the US, Russia or another country. The companies meeting government standards, obtaining the quality of gasoline required and getting access to the least costly fuels will be of great interest to Tarsco Mexico.

Q: What is your view of ASEA’s role in accelerating the process in this new market landscape?

A: Most of the players are learning from zero. There was no prior experience during the PEMEX monopoly. Now we have an open market and the regulators, the suppliers and everybody who participates in this industry have had the opportunity to learn. And the learning process had to be very fast and efficient. ASEA has had an extremely difficult ride because the regulator needs to manage a bureaucracy that is usually very complicated in Mexico. It has had to develop standards from zero, so in my opinion it does not yet have the capacity to release permits very quickly. But they are doing an important job, gaining experience and learning from previous experiences. 

Q: Under what time frame do you expect this market to roll out?

A: In my opinion, all the infrastructure that is needed in this industry will be in a consolidation stage for the next 15 years. We need pipelines, docks, jetties to unload fuel, tanks and railroads. This raises an opportunity to develop a wide range of projects. The policy of strategic storage of fuels is a very good one, as well as the decision to divide the country by regions since the need for storage is not only present in the central area of Mexico. This policy will permit the development of regions such as the southeast containing the states of Oaxaca, Chiapas and Tabasco. All these regions with high poverty rates, few services and a lack of infrastructure, require the development of industry. The government currently has a midstream policy that promotes investment and the growth of infrastructure. I think we will see a positive response from the private sector. 

Q: Where does Tarsco foresee the most potential for growth in storage capacity?

A: From my point of view, the major projects will come from the Gulf of Mexico and Tuxpan, Veracruz, where we will see the largest expansion of storage capacity. We think that most of the projects will be medium sized to small sized because of the infrastructure requirements for transloading fuel.