Zenith Energy plans to market and develop assets for oil storage and distribution in Mexico as part of an agreement with Cemex.
The agreement provides for the use of certain facilities of Cemex in Mexico to support the growing demand for oil products.
Zenith has been given the rights to develop these sites for fuel and LPG storage and distribution. The facilities include more than 90 storage and distribution locations, both inland and in coastal cities, and most of them are connected to the Mexican railroad network.
In a statement, Zenith says that the development of these sites will not interfere with Cemex’s normal business activities in Mexico.
Jay Reynolds, chief commercial officer, says: ‘Based on the advantageous locations in major metropolitan areas and the customer demand for reliable operating facilities in Mexico, we believe that this solution will be very attractive to the market, particularly those looking for alternatives to uncertain and expensive pipeline projects.’
‘We see a growing number of promising opportunities to invest in the country’s developing midstream sector, particularly with the ability to utilise existing assets in key distribution markets inside the country,’ adds CEO Jeffrey Armstrong.