San Antonio refinery to build export terminal in Mexico for US gasoline and diesel
The San Antonio refiner Andeavor is planning to build a $100 million fuels terminal in the Mexican city of Rosarito, about 20 miles from the U.S. border.This is happening despite all teh talk about NAFTA and the Trump administration's concern about trade with Mexico. The Mexican government has been encouraging US investment in its fuel supply business and companies like Exxon are also planning investments there.
The company said the terminal will reduce the cost of directly importing fuel into the Baja California portion of Mexico, located in northwest Mexico.
"This logistics project will further strengthen Andeavor's ability to cost effectively deliver gasoline and diesel to our customers directly from our refineries on the West Coast," said Andeavor's CEO Greg Goff.
The move comes just over a month after Ohio refiner Marathon Petroleum said it would buy Andeavor for $23.3 billion. The deal is valued at $35.6 billion when accounting for Andeavor's debt.
Andeavor pushed into Mexico for more than a year with a goal to have 300 branded stores by 2020 and upwards of 30,000 barrels a day of fuels exports to Mexico. In October, Andeavor delivered its first ship-borne fuels export to Rosarito, where it was then transferred to assets owned by the state-owned oil company Petroleos Mexicanos or PEMEX.