Koch Supply & Trading Mexico is importing ultra-low sulfur diesel (ULSD) into Mexico through Vopak Mexico’s operations at the Port of Veracruz. This is the first import of fuel since industry was nationalised in 1938. Under energy reform which began in 2013, independent companies can now provide new alternatives for fuel supplies.
The product was supplied via Koch’s U.S. export system and will be delivered through a multi-year services agreement with the newly revamped Veracruz facility owned and operated by who has obtained the first regulatory authorisation for an independent party to store and handle petroleum liquids.
This cargo meets or exceeds all Mexican-regulated quality and environmental standards. By using an existing facility that has been retrofitted, Koch Mexico can deliver imports significantly earlier versus other terminals which have yet to be permitted and constructed.
Vice President of Koch Mexico, Pete Ramirez said: “This is an important new supply route to Mexico for transportation fuels produced by US refineries such as Koch Mexico’s affiliate, Flint Hills Resources, which operates a 300,000 barrel per day facility in Corpus Christi, Texas. Koch Mexico plans to import up to 40,000 barrels (6.4 million liters) per day of these products into Veracruz, and our intention is to lower costs for the citizens of Mexico. By working with Vopak and the regulatory agencies in Mexico we are now able to provide downstream distributors and retailers the opportunity to augment the supplies of fuel that are currently available in the market. We are planning to be a reliable importer of petroleum products as part of a long-term strategy for development in the country.”
Managing Director of Vopak Mexico, Cristhian Perez said: “We are proud to contribute to more security of supply for the Mexican energy market by developing improved storage and logistics solutions. Working with established industry leaders like Koch allows us to break through into the Mexican fuel storage market, which has been opened by the energy reform, ultimately benefitting Mexican consumers.”
15th Sept 2017