OXXO Gas to Compete with Pemex

When Mexico City gets UBA diesel, there will be chest thumping speeches by politicians and lots of yadda-yadda by the media. Mexico City comes first. NAFTA regs forbid cross-border trucks that do not have UBA diesel so that was mandatory. By legislation, Mexico City then the state of Mexico have 2nd and 3rd dibs on UBA diesel. the following hierarchy ordinal remains unknown. I have a gut hunch the southern half of the country will be sucking hind ----, when it comes to introduction. Myself, owning an older Cummins 400, I hope to not outlive the saturation of Mexico with UBA. A further hunch tells me, the expansion of UBA diesel beyond Mexico and the state of Mexico will take near eternity. the city alone contains an astonishing number of diesel trucks and transportation buses.

ULSD, let there be ULSD, please.

SHELL OIL / PEMEX

JOINT VENTURE

DEER PARK TEXAS

REFINERY

Been in operation for 15 years. One of the largest refineries in the US. They have the decokers, sulfur plants and treaters, and the have had the ability to make every last drop of Pemex Premium, all of the UBA diesel and UBA premium gasoline sold in the country. For years, Mexico has been importing >35% of it's total "comistibles". Look at the six refinaciones en la republica. How many cat crackers, alkylate plants and sulfur plants do you see? The refineries are near collapse. Of those so-called "modernization" efforts, a huge majority failed. Efforts with Japanese, Koreans, Germans and even the French broke down.

XXX

QUESTIONS......

Mexico's president said earlier this year that much would change in the oil business in Mexico on April 1. One thing I noted was allowing importation of fuel from the US. If the independent stations in Mexico can buy fuel from the US at lower cost than from Pemex will there be an excise tax on the US fuel and if so how much? If Gulf enters the market will they be selling US made fuel? Will franchisees be able to buy US fuel and tanker it to stations in Mexico? If US fuel prices stay low will the prices in Mexico drop?

When we traveled across Texas last fall they were working furiously on building two pipelines in West Texas that would go from US oil fields to the Mexican border. I believe those pipelines were to move US oil to Mexico but I could be wrong. They were being built near Van Horn with one going south and one going west to El Paso. Anyone know more about that?

Translation by Google Translate


FEMSA start buying Pemex franchises

The company states that the opening of the energy sector allowed to participate directly in the sale of gasoline, so will buy gas stations that operated through agreements with third under the trade name OXXO Gas.

FEMSA formalized in its fourth quarter report sent today to the Mexican Stock Exchange (BMV), which will begin with the purchase of gasoline stations that operated through agreements with third under the brand name OXXO Gas.

"Commerce has agreed to acquire FEMSA franchises owned by third parties and Pemex plans to lease, buy or open more stations in the future," reads the report that shipping firm to the BMV, section of recent events.

According to the company, the above legal changes as part of the Energy Reform in Mexico, which prior to this did not allow him to FEMSA Comercio participate in the sale of gasoline, "should and therefore that owned franchise Pemex due to the participation of foreigners in the base of institutional investors FEMSA ".

"Since 1995, FEMSA Comercio has provided services and assets for the operation of gasoline stations through agreements with third parties that have franchises Petroleos Mexicanos (" PEMEX ") under the trade name OXXO Gas. Over time, this brand has become synonymous with quality service for our customers, and revenue for each gas pump have risen consistently above the industry.

"As of December 31, 2014, were 227 OXXO Gas stations, mostly located next to an OXXO, and generated 16.178 million pesos in revenue from the sale of gasoline and related products during 2014", says the company.

"Historically, Mexican legislation did not allow FEMSA Comercio participate in the sale of gasoline and therefore it was owned PEMEX franchises due to the participation of foreigners in the base of institutional investors FEMSA.

"In light of recent changes in the legal framework as part of the Energy Reform in Mexico, FEMSA Comercio is no longer subject to this limitation and has decided to pursue a strategy of accelerated growth in this business. To this end, FEMSA Comercio has agreed to acquire PEMEX franchises owned by third parties mentioned above, and plans to lease, buy or open more stations in the future, "he explains.

The company notes that begin with a strategy of accelerated growth in OXXO Gas.

"FEMSA Comercio already had assets necessary to operate these 227 stations, so that the capital implications of this agreement to acquire Pemex franchises are low."

The conglomerate provides that the operation of petrol stations will have attractive returns.

"We expect the business of gas stations FEMSA Comercio has modest margins but generate attractive returns, with the potential for further improvement as we achieve greater scale.

"As with all recent acquisitions, once you close the transaction will include the results in the financial reports of FEMSA Comercio, and provide them organically numbers. We are excited to be able to accelerate our participation in this business of high growth and high returns, and we believe we are in a unique order to capture this attractive opportunity position ", he said.


Gulf gas stations are coming to Mexico

Gulf Oil plans to have 100 open by the end of this year

- See more at: http://mexiconewsdaily.com/news/gulf-gas-stations-coming-mexico/#sthash.kZYUkn6V.dpuf

A pioneer in the retailing of gasoline is coming in June or July when four Gulf gas stations open in Mexico.

Gulf Oil plans to have 100 full-service and self-serve stations operating by the end of the year, a number it wants to see grow to 2,000 in the next three years.