Refinery firm Valero heads for Mexico (Mexico News Daily)

(Tomado de Mexico News Daily)

United States-based oil refining firm Valero Energy is preparing for its venture into fuel distribution in Mexico, which will entail the construction of three storage and distribution facilities representing an investment of US $200 million.

The Fortune 500 firm reported it is in the process of obtaining the necessary permits from the Energy Regulatory Commission (CRE) to begin construction.

With a storage capacity of almost 1 million barrels, the Altamira, Tamaulipas, facility will be the largest. The other two will be built in the cities of San Luis Potosí and Monterrey, with a storage capacity of 325,000 barrels each.

The transnational oil company intends to operate similar facilities throughout Mexico, with the three terminals representing the first stage of its expansion strategy.

During the second stage, Valero Energy intends to cover the northern and southeastern markets. The company will transport its fuel to Mexico via tankers, and distribute within the country via tanker trucks and trains.

Despite pipelines being the cheapest way of transporting fuel, Valero has discarded that option based on the security concerns presented by huachicoleros, or pipeline thieves.