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News Article

Ministry of Energy Suspends Trafigura’s Permits

By Antonio Trujillo | Mon, 09/27/2021 - 10:34

Mexico’s Ministry of Energy has suspended several of Trafigura’s import permits.

Geneva-based multinational company Trafigura, one of the world’s largest resource traders, has seen several of its fuel import permits suspended by the ministry headed by Rocío Nahle. Specifically, and as shown by a document published last week, four permits are in the process of cancellation, while one has expired. All of the permits covered jet fuel, diesel, and gasoline specifications.

A spokesperson for the company stated that Trafigura “sees no valid basis for the suspension of import permits for Trafigura Mexico. Trafigura complies with applicable laws and regulations in the jurisdictions in which it operates, including Mexico.” On the other hand, the Ministry of Energy revealed the reasoning as a response to the company procedures, mainly that “they do not prove the origin and legality of their products.”

All of the five permits were granted at the latter half of 2018, shortly before the current administration under President López Obrador began on December 1. According to their initial guidelines, the permits were valid until 2038. Last July, the Mexican state-owned oil company PEMEX temporarily banned any new business with the Swiss company, though it remains unclear whether or not both events are connected.

The Ministry’s decision came to be known following last week’s CRE actions to stop a fuel landing from the company in Tuxpan, Veracruz, at a proprietary terminal. The company’s terminals in Puebla and Hermosillo, collectively known as TP Terminals, alongside storage and distribution facilities Windstar Energy Resources and Monterra Energy, were also closed down by the commission. 

Some industry analysts say these measures come as a direct consequence of the federal government’s open preference for state companies PEMEX and CFE, and an increasingly hostile environment toward the private sector and initiatives.

According to the latest data, the Energy Regulatory Commission (CRE), has canceled or suspended over 100 permits for the commercialization of petroleum products, gas and other types of fuel, notable amongst them a permit for Dutch company Shell and also Spanish company Iberdrola, arguing over a year of inactivity. Moreover, Mexico’s tax service SAT announced last July the suspension of 82 companies from the importers registry, amid them Kansas City Southern’s Repsol and Grupo México, alleging a lack of requisite compliance.

The data used in this article was sourced from:  
Forbes, Reuters
Antonio Trujillo Antonio Trujillo Junior Journalist & Industry Analyst