Avant Energy is planning to build a logistics system that will supply refined products to Mexico’s Bajio region via rail from the Port of Altamira in the northeastern state of Tamaulipas, the company said Wednesday.
The network will be known as Supera and it will be built along with strategic partners Savage Services and Kansas City Southern (KCS), Avant said in a statement.
Avant was not immediately available for comment. The company already has all the port facilities and regulatory permits required for construction.
The system will be anchored by a 1.2-million-barrel marine import terminal at the port of Altamira, which will be able to unload Panamax vessels.
Source: Avant plans logistics system to import refined products into Mexico – Oil | Platts News Article & Story
Mexico’s 2013 energy reforms are based on bringing in more competition for the two state-owned monopolies that had become too stagnant, Pemex (oil and gas) and CFE (electricity). One of the key areas with huge upside for foreign firms is the very expensive process of natural gas storage, which is critical for Mexico as it moves to replace overused fuel oil and reduce GHG emissions to meet climate change goals.
Despite rapidly declining production, Mexico is one of the most natural gas dependent nations on Earth. Gas now supplies 45 percent of all energy and 60 percent of electricity. Mexico has been forced to increasingly depend on cheaper piped imports from the U.S., which at 4.5 Bcf/d now account for about 55 percent of Mexico’s total gas usage. Much more gas will be required. Per capita, Mexico’s 130 million citizens consume just a third of the electricity that other OECD nations do. Additionally, there is a manufacturing boom in Mexico, namely in the automotive industry that will use increasing amounts of natural gas.
Source: Mexico’s Natural Gas Dilemma | OilPrice.com
Mexico is trying to lure as much oil investment as possible before the president who overhauled the country’s energy industry leaves.
By the end of the summer, the country that until recently had a state monopoly on crude will have offered more than 100 permits to oil majors like Exxon Mobil Corp.
in three auctions this year. The last bidding round, announced on Wednesday, will cover an area bigger than Delaware.
The pace of sales is unprecedented as the country prepares to say goodbye to the presidency of Enrique Pena Nieto, who oversaw a complete makeover of the country’s energy laws to lure foreign investment into everything from oil fields to pipelines to refineries.
An election in July could alter the course of the enormous transformation as Mexicans choose who will succeed Pena Nieto in December, with a candidate that has pledged to review the energy reforms leading the polls.
For now, oil giants including Exxon, BP Plc and Chevron Corp. are set to invest tens of billions of dollars in the country after winning exploration and production licenses in previous auctions. And they are lining up
to bid for more.
“The rounds transcend the electoral cycles,” Energy Minister Pedro Joaquin Coldwell said today at the presentation of the onshore auction plans in Mexico City. The oil auctions “exclusively comply with the energy policy that Mexico demands and will continue to demand in the future.”
Source: Mexico Holds Oil Bids Like There’s No Tomorrow Before Election – Bloomberg
San Antonio-based refining company Valero Energy Corp. has signed a lucrative deal that will allow it to supply gasoline, diesel and jet fuel to thousands of new customers south of the border in Veracruz, Puebla and Mexico City.Officials with Valero (NYSE: VLO) confirmed that the company’s Mexican subsidiary, Valero Marketing and Supply de México SA de CV, has entered into a long-term import agreement with Mexico City-based Infraestructura Energetica Nova SAB de CV.
Source: Valero Energy Corp. (NYSE: VLO) signs supply deal to ship fuels to Mexico – San Antonio Business Journal
Mexico held back-to-back licensing rounds on 12 July 2017 as part of the President Enrique Peña Nieto administration’s goal to lure private investment to the Latin American nation’s upstream.To use an American baseball analogy, Mexico knocked it out of the park each time and now Mexican oil and gas is gaining momentum.The duo-round system on 12 July encompassed a total of 24 blocks. By the end of the day, 21 blocks had been awarded.
See maps at article link below:
Source: Mexican Oil and Gas Gaining Momentum – Drillinginfo
A consortium of Premier Oil Plc, Sierra Oil & Gas S de RL de CV and Talos Energy LLC made the discovery in the shallow waters of the southern Gulf of Mexico just two years after winning the exploration license. It’s the first new find by a private company in the country in almost 80 years, according to consultant Wood Mackenzie Ltd., possible only after the government ended the monopoly of state-run Petroleos Mexicanos.The Zama discovery “is the most important achievement so far of Mexico’s energy reform,” Pablo Medina, the senior upstream analyst for Latin America at Wood Mackenzie, said by email. “It is one of the 15 largest shallow-water fields discovered globally in the past 20 years.”
Source: Mexico Oil Privatization Pays Off With Billion-Barrel Find – Bloomberg
Talos Energy announced on Wednesday that it, along with partners Sierra Oil & Gas and Premier Oil, had made a significant discovery offshore Mexico through the Zama-1 wildcat well.Initial tests have indicated that Zama could hold up to 1.4 billion-2 billion barrels of original oil in place. The reservoir is thought to contain mainly light oil, with gravities of 28-30 degrees API, in addition to associated gas.“This is both a historic and significant discovery,” CEO Tim Duncan said in a statement.
Source: Talos reports large Gulf of Mexico discovery | The Oil & Gas Year
Premier Oil’s shares rocketed as much as 38 percent on Wednesday on news it discovered potentially more than 1 billion barrels of oil off the coast of Mexico, a major victory for Latin America’s No. 2 economy since the historic opening of its energy sector.Premier, which holds a 25 percent interest in the block alongside Talos Energy and Sierra Oil and Gas, said estimates for the Zama-1 well were in excess of 1 billion barrels, which could extend into a neighboring block.The news of the discovery, in the first shallow-water offshore exploration well drilled by the private sector in Mexico since the country’s 2014 energy sector opening, sent Premier’s shares rocketing as much as 38 percent on the London Stock Exchange and helped the peso strengthen 0.70 percent to 17.785 per dollar.In afternoon trading in London, Premier Oil shares were up 34 percent at 61.83 pounds.The find also hands the government of President Enrique Pena Nieto, which ended state-oil firm Pemex’s decades-long monopoly, a key victory as Mexico prepares to embark on fraught trade, security and immigration talks with U.S. President Donald Trump’s administration.Premier Oil’s Chief Executive Tony Durrant said the discovery “adds materially” to Premier’s portfolio of assets.”(The) Zama-1 discovery announcement appears about as material as we could possibly imagine at this early stage,” Jefferies analysts wrote in a note.The project is jointly owned with Talos Energy, which acts as operator and has a 35 percent stake, and Sierra Oil and Gas which holds the remaining 40 percent.
Source: Premier Oil’s major Mexican oil discovery boosts shares
Mexico is racing against the clock to get natural gas pipelines online this summer.The nation has found itself “in a tight situation,” David Madero, who oversees the government’s Natural Gas Control Center, said in an interview in Mexico City. The season when gas demand typically peaks is fast approaching, and Mexico is still dealing with setbacks in getting long-anticipated pipelines into service.The delays are causing a glut of natural gas to swell up north of the border as U.S. shale drillers wait for the lines to carry their fuel to market. Citigroup Inc. warned in a research note two months ago that the holdups in Mexico would probably force gas in the Gulf Coast to trade at heavy discounts.
Source: Mexico Races for Pipes to Reach More U.S. Gas Before Summer – Bloomberg