Trafigura on Track to Be Mexico’s First Private Fuel Producer – Bloomberg

Trafigura is on track to become one of the first private companies to produce fuel in Mexico as the nation opens its energy market to foreign investment.Close all those tabs. Open this email. Sign UpThe Dutch trading house and unnamed partners plan to open a fractionation plant in Mexico’s gas-rich Burgos region by the end of 2017 that will process heavy naphtha from national oil company Petroleos Mexicanos into diesel and light naphtha, said a Pemex official who couldn’t be named because of company policy. The Pemex official couldn’t say what the plant’s capacity will be. Trafigura spokeswoman Victoria Dix declined to comment.The agreement gives Pemex part of the plant’s production and allows Trafigura to sell to privately owned gasoline chains, the Pemex official said. Gas from Burgos now goes to refiners on the U.S. Gulf Coast for processing.“Is this going to make the Valeros of this world go out of business? No,” said Robert Campbell, head of oil products research at Energy Aspects on the phone from New York. “But it is a step in the direction of the opening of Mexico’s downstream market, and it shows the opportunities are there for some lateral thinking.”

Source: Trafigura on Track to Be Mexico’s First Private Fuel Producer – Bloomberg

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