Tesoro Corp., which officially becomes Andeavor on Aug. 1, 2017, has reached a definitive agreement that will enable the company to supply transportation fuels and launch the ARCO®, brand in the states of Sonora and Baja California, Mexico. The ARCO brand provides value to consumers through its high-quality TOP TIERTM gasoline.
The agreement allows Profesional Fuels Solutions, S.A. de C.V. (ProFuels) to begin wholesale marketing operations in Mexico under the ARCO brand. Professional Fuels Solutions is owned by Tijuana-based gas station company Grupo ECO. The first ARCO-branded stations are expected to open within the next 60 days.
Tesoro Corp.'s wholesale marketing agreement with an affiliate of ProFuels, currently the largest operator of retail gasoline stations and a distributor of transportation fuels in northwest Mexico since 1991, provides ProFuels the ability to market and grow the ARCO fuel brand in the region.
Tesoro Corp. plans to integrate supply to Mexico with its West Coast refining, marketing and logistics system and expects to expand the brand throughout Baja California and Sonora to achieve a leading market position in both states.
"We are very excited to begin operations in Mexico and to launch the ARCO brand. This agreement furthers our strategic marketing integration and presents a tremendous opportunity to offer a high-quality fuel in a growing market," said Greg Goff, Tesoro Corp. chairman, president and CEO.
The ProFuels deal follows an agreement with Pemex Logistics, which gave Tesoro Corp. access to pipelines and storage terminals in cities such as Mexicali, Rosarito, Ensenada, Guayamas, Hermosillo, Ciudad Obregon, Magdalena, Nogales and Navojoa.
Tesoro Corp., through its subsidiaries, operates 10 refineries in the western United States with a combined capacity of approximately 1.2 million barrels per day and ownership in a logistics business. Tesoro's retail-marketing system includes approximately 3,000 retail stations marketed under multiple well-known fuel brands, including ARCO®, SuperAmerica®, Shell®, Exxon®, Mobil®, Conoco®, Tesoro®, USA Gasoline(TM) and Giant®.