Monterra Energy is to build additional fuel storage capacity in central Mexico. It plans to construct a Mexico City-area terminal as a “sister” to its flagship 2.2mn bl terminal under construction near the coastal import centre of Tuxpan.

The inland terminal will be in the state of Mexico just outside Mexico City, on the busiest fuels route between the port of Tuxpan and the high-consumption hub in the capital city, Monterra President Michael Williams said at the ArgusMexico Fuel Markets Summit in Mexico City.

The new terminal will likely have under 1mn bl of storage capacity and will have a throughput capacity of 50,000 b/d, Williams said. Monterra’s Valle de Mexico terminal system will have blending capabilities and connect with existing rail and pipeline capacity.

The terminal should allow double tank trucks — typically 60,000 l (15,850 USG) capacity trucks — coming from Tuxpan to unload. Double tank trucks are not allowed to enter most urban areas of Mexico City, Williams said, so smaller trucks will be loaded at the new terminal for the final haul into the city.

In the next two to three years Monterra expects private companies in Mexico to continue to develop that storage capacity for fuels at the country’s main entry ports of Tuxpan, Veracruz, Rosarito and Manzanillo, which would then serve major cities such as Monterrey, Guadalajara, and Mexico City. Inland strategic points include Mexico City’s suburban areas and San Luis Potosi, according to Williams.

“In Monterra’s estimate by the middle of 2021 the bulk of the newly planned private infrastructure will be up and running and will provide importers entry and storage alternatives to Pemex,” Williams said. “The result will be market efficiencies and improved storage coverage.”

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2nd September 2019