Pipelines

Andeavor awarded additional pipeline and storage capacity in Mexico

Andeavor awarded additional pipeline and storage capacity in Mexico
Map courtesy of Andeavor.

Andeavor, a U.S.-based marketing, logistics and refining company, has been awarded pipeline and storage terminal capacity that will facilitate a new round of expansion of its ARCO® brand of gas stations in Mexico. Pemex Logistics announced that Andeavor was the successful bidder in the Open Season 3.1 for the North and Pacific Systems in the Northwestern region of Mexico.

The specifics of the bid are confidential and “we are currently in the process of reaching definitive agreements with Pemex Logistics,” Andeavor said in a statement.

The recognized capacity includes use of three Pemex Logistics marine and storage terminals in the states of Baja California Sur and Sinaloa, plus two pipelines and two storage facilities in the state of Chihuahua. Pemex Logistics is the logistics arm of Mexico’s national oil company Petróleos Mexicanos.

“We are excited about this awarded capacity and the opportunity it provides for additional value creation for our company, customers, business partners and communities in Mexico,” said Siomara Marquez, Andeavor country director, Mexico.

Andeavor operates 10 refineries with a combined capacity of approximately 1.2 million barrels per day, an extensive logistics network, and a retail-marketing system that includes approximately 3,300 retail stations marketed under multiple well-known fuel brands.

ARCO® is a trademark brand owned by Andeavor.  The ARCO® brand represents more than 1,500 sites across the United States and Mexico. Currently, there are approximately 80 ARCO® gas stations in Baja California, Sonora and Sinaloa.

Andeavor was among the first U.S. refining companies to act on Mexico’s energy reforms, which opened its energy markets to foreign investment and competition. The company signed a pipeline and storage terminal deal with Petroleos Mexicanos in July 2017.

In a partnership with Tijuana-based Profuels, Andeavor has since opened more than five dozen ARCO-branded service stations in Baja California and Sonora. The company has plans to open more than 300 ARCO locations in Mexico by 2020.

The Pemex Logistics award and a cross-border refined products pipeline owned by Magellan Midstream Partners LP will enable Andeavor to use its El Paso Refinery to supply ARCO gas stations in Chihuahua and Sinaloa. Capable of processing up to 135,000 barrels of crude oil per day, the refinery is able to receive crude oil feedstocks from the nearby Permian Basin via pipeline.

The new award from Pemex Logistics also comes as Marathon Petroleum Corp. is close to completing a USD 23.3 billion acquisition of Andeavor, which is expected to close by the third quarter.

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