Repsol yesterday opened its first service stations in Mexico, marking the beginning of a long-term project that targets a market share of between eight and 10% in the next five years. Repsol already has 10 service stations operating in Mexico.
To achieve this goal, Repsol expects to invest close to EUR 400 million (USD 492.8 million), excluding the development of infrastructure, demonstrating its commitment to the country and its desire to become a relevant player in the revitalization of Mexico’s energy and hydrocarbon market.
The company expects to end 2018 with 200 fueling stations open in the country, offering the highest standards of quality, trust and transparency characteristic of Repsol’s service.
Mexico is the sixth-largest market in the world in terms of gasoline and diesel fuel consumption. With nearly 120 million inhabitants and an ongoing expansion, it shows great potential and a growing fuel demand.
According to data from the Energy Regulatory Commission (CRE), 40% of Mexican towns lack service stations. The country has 11,800 of them: one gas station for every 10,560 people, and one for every 23,165 residents of Mexico City. This rate is lower than that of many other countries, such as the United States, Germany and Brazil.
Repsol is receiving multiple expressions of interest from Mexican businesspeople in the industry to form partnerships that extend its network in the country. In addition to this announcement, an additional 40 service stations will soon be added. Further agreements with local partners are being negotiated, and the company also plans to open its own service stations independently.
As a symbol of the beginning of this new era in Mexico, Repsol held an inaugural event at its new Siete Banderas service station, one of the country’s top 20 in terms of fuel sales, located in Mexico City. It employs 50 people and serves more than 2,000 customers daily.
Attendees included Pedro Joaquín Coldwell, Mexico’s secretary of energy; Luis Fernández-Cid de las Alas, the Spanish ambassador to Mexico; and María Victoria Zingoni, Repsol’s executive managing director of Downstream.
“Mexico is a country with great potential for growth and to which we are clearly committed as a strategic market for the company. We have a strong interest in participating in logistics infrastructure projects in order to optimize the country’s fuel distribution model. The opening of these service stations is just the first step in a strategic plan through which we hope to become relevant throughout the sector’s value chain in Mexico,” Zingoni said.
Repsol operates in Mexico in several different businesses, with various local partners. It has an alliance with KUO Group, with whom it founded Dynasol in 1999. This joint venture is one of the top 10 synthetic rubber companies in the world and has plants in Mexico (Altamira), Spain (Santander) and China. Repsol also produces and distributes its lubricants in Mexico.