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Issue Contents


Volume 13, Issue 5
Published: September 13, 2017
The storage and transport games

A lack of refining capacity in Mexico means that oil product imports will continue to increase, and infrastructure investments are now being made to capitalise on these market dynamics

The storage and transport games started long ago, back in 2013, when several investors saw the potential demand for refined imported products from Tuxpan Veracruz.
According to the Oil Prospective 2015-2029 report, during this period oil national production will increase by 24.1%, while demand will also increase by 35.9%. This means that due to a lack of Mexican refining capacity, at least
for the next 12 years, Mexico will continue to increase its imports of oil products. So far, imports have already increased by 25% from 2014 to 2016, and the US has played an important role, providing 83% of imports.
In order to support the new demand, investments in infrastructure are now being made. Currently, there are three important pipeline investments for oil products storage and transportation.
The first is in Tuxpan, Veracruz, one of the most important ports, receiving 36% of the oil products imports in central Mexico. There, Sierra Oil & Gas, TransCanada and Grupo TMM are building an $800 million project that includes a marine terminal near Tuxpan, a 265 km pipeline with a capacity of approximately 100 thousand barrels per day from Tuxpan to central Mexico, and an inland storage and distribution hub in central Mexico with storage capacity of 1.2 million barrels.

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Investing in a flourishing market
As the chemical industry experiences a resurgence in the US, Stolthaven Houston is positioning itself to meet growing demand for infrastructure The shale oil revolution has led to a revival in the US chemical sector as significant investments are made in production capacity, generating more demand for more supply chain infrastructure...
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Fulfilling Houston's storage potential
Following the completion of 7.5 million barrels of underground cavern storage capacity, Fairway Energy is focusing on creating an extensive distribution network to support Houston’s thriving crude oil market Fairway Energy’s underground cavern storage is addressing a need in Houston for a more efficient crude oil marketas production continues to drive demand for logistics infrastructure...
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The storage and transport games
A lack of refining capacity in Mexico means that oil product imports will continue to increase, and infrastructure investments are now being made to capitalise on these market dynamics The storage and transport games started long ago, back in 2013, when several investors saw the potential demand for refined imported products from Tuxpan Veracruz...
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The rupture ripple effect
Analysing the impact of crude pipeline outages on the supply chain The network of crude pipelines in North America serves as the circulatory system for the oil supply chain...
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From demand pull to supply push
Altered supply chain dynamics, which has seen the US move from peak oil to a supply glut, have created attractive conditions for storage operators The resurgence in US crude production over the past several years has generated a myriad of market and structuralchanges, including upending world trade flows while pressing and holding refined fuel prices at low levels that has incentivised demand...
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Turbulent times
How sanctions on Venezuelan crude, Mexico’s energy liberalisation and President Trump’s ‘America first’ energy stance are having an effect on trade flows across the US...
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