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BP looking to grab 15% share of Mexico's retail gasoline market

Mexico City (Platts)--9 Mar 2018 706 pm EST/006 GMT


BP is keeping its options open regarding fuel supply in Mexico while it seeks to seize 15% of the country's retail gasoline market, the company's fuel director said Friday.

BP is assessing multiple supply options, Alvaro Granada told reporters at the inauguration ceremony of the 160th BP-branded station in Mexico.

"Our priority is that the product our consumers receive is the best price in the market," Granada said.

Granada said BP has several supply options to achieve this goal, including buying fuel from Mexico's state company Pemex, an independent company, or importing the fuel itself.

"We have not committed ourselves to anything in this sense," he added.

Granada said BP in the long term seeks to build an integrated supply chain in Mexico. The company is currently evaluating several logistics projects, but these could take a couple of years to develop, he added.

BP wants to have 1,500 branded stations in Mexico by 2021, half of all new stations it expects to open globally. Currently, the company has signed 300 contracts to rebrand and build new stations, Granada said. BP expects the number of stations under its brand will reach 500 by the end of this year.

Granada said Pemex is a strategic partner, and both companies have a supply and logistics agreement in place.

"They are providing us with good service, but I can't speak on the details of our agreements," he said.

The executive said BP is not importing fuel into Mexico, although it is one of Pemex's main international fuel suppliers.

Pemex still controls 99% of Mexico's gasoline imports, data from the country's Energy Secretariat shows.

ExxonMobil and Andeavor also import gasoline, while Koch has started importing diesel. However, a lack of infrastructure has limited new players from bypassing Pemex and directly importing large quantities.

While BP hasn't announced any major logistic projects, competitors like Glencore, Valero Energy, Avant Energy, ExxonMobil, Koch Industries, and Grupo Lodemo are securing logistic projects across Mexico. -- Daniel Rodriguez, newsdesk@spglobal.com

-- Edited by Kevin Saville, newsdesk@spglobal.com




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