May 3, 2017 [OPIS] - Tesoro Corp. has been awarded all of the petroleum storage and pipeline transport capacity in northwest Mexico made available in the first open season for third parties held by Pemex Logistica, Pemex said Tuesday.
In total, the U.S. refiner and fuel marketer will have access to 320,679 bbl of storage capacity and 9,535 b/d of pipeline capacity in the northwest Mexico states of Baja California and Sonora. Pemex retains use of a greater proportion of the Pemex Logistica system — 75% of pipeline capacity and 63% of storage space.
With most of Tesoro’s 895,000 b/d of refining capacity located on the U.S. West Coast, the San Antonio-based company is well positioned to supply exports to western Mexico. The company’s largest refinery is in Los Angeles (380,000 b/d), followed by the 166,000-b/d Golden Eagle plant in Martinez, Calif., and the 120,000-b/d refinery in Anacortes, Wash.
Carried out in coordination with the Energy Regulatory Commission (CRE), a total of 22 companies participated in the Pemex Logistica open season and seven of the participants gave guarantees.
The term awarded to Tesoro is three years and the rates offered by Tesoro were above the minimum set by Pemex, Mexico’s state oil company said in a statement, without disclosing the rates.
Awards in the first open season process, which kicked off in late December 2016, were initially expected in mid-February but met with several delays. One postponement was made to encourage more participation and another was due to an error in the tariff formulation process.
OPIS notes that despite the delays in the first open season, Mexico allowed retail fuel prices to float freely in Baja California and Sonora at the end of March.
The next open season to be held will be for fuel logistics assets in Region 2 comprised of Chihuahua, Coahulia, Nuevo Leon, Tamaulipas and Municipio de Gomez Palacia, Durango. The Region 2 liberalization of prices is to begin on June 15, according to CRE.
The dual open season and price liberalization processes are to proceed through 2017 in Region 3 (Baja California Sur, Durango and Sinaloa), Region 4 in the central and southern parts of Mexico and then concluding with Region 5 (Campeche, Quintana Roo and Yucatan).
In Baja California, the capacities awarded to Tesoro were 155,281 bbl at the Rosarito Terminal; 16,628 bbl at the Cove Terminal and 8.997 bbl at the Mexicali Terminal. Also awarded was 2,300 b/d of capacity on the Rosarito-Mexicali Pipeline and 2,350 b/d on the Rosarito-Ensenada Pipeline.
In Sonora, terminal capacity was awarded to Tesoro as follows: Guaymas (108,377 bbl); Terminal de Nogales (11,534 bbl); Terminal of Ciudad Obregon (7,814 bbl); Hermosillo Terminal (7.479 bbl); Magdalena Terminal (2,784 bbl) and Navojoa Terminal (1,785 bbl). Also awarded was 2,571 b/d on the Guaymas-Hermosillo Pipeline and 2,314 b/d on the Guaymas-Ciudad Obregon Pipeline.
——————————
TankTerminals.com – Research, Market and Expand Your Presence within the Tank Storage Industry. Learn more.
