Repsol enters Mexico’s fuel retail market with a US$ 420 million investment plan
Spain-based oil and gas company Repsol will invest around US$ 420 million over the next five years, to open between 1,000 and 1,250 gas stations in Mexico, with which it expects to reach a market share of 8% to 10%.
This work plan will involve opening 200 to 250 service stations per year, said Maria Victoria Zingoni, Repsol Downstream’s general director.
At a press conference, the executive said that the resources will be used in both the reconversion of existing gas stations and the opening of new units. It is estimated that 25% of the stations will be of their own.
Repsol expects to close 2018 with around 200 retail spots, whose expansion began yesterday in Mexico City with the opening of the first store.
Zingoni explained that, in the future, the company plans to make investments in infrastructure, such as pipelines and storage tanks, but those plans will be further detailed once the projects are completed.
“Mexico is a country with great growth potential, which represents for our company a clear commitment and a strategic market,” she said.
According to the Energy Regulatory Commission (CRE), there are around 11,700 service stations in the country, of which 2,178 operate under 32 new brands different from Pemex, equivalent to 18.5% of the total.
Prior to the approval of the constitutional energy reform, Pemex, Mexico’s state-owned gas and oil company, was the only firm authorized to supply fuel to gas stations. At the same time, those businesses were obliged to operate under the Pemex brand.
With the opening of the retail fuel market, the regulatory body estimates that the number of service stations in Mexico can be doubled, for which approximately US$ 12 billion will be invested.
Among the 32 brands that Pemex faces are Oxxo Gas, Gaso Red, Petro 7, Hidrosina, Orsan, Redco, Eco and Gasmart, La Gas and BP.
There are also Nexum, Rendichicas, Ruta, Vipgas, Rendimax, Gasmex, Shell, El Rey, Exxonmobile, Arco, Chevron, Gastop, G500, Supercharge, Smartgas, Appro, Combured and Gulf, to name a few.