The Anglo-Swiss multinational Glencore will invest US $1 billion in the Mexican oil industry over the next five years, and will begin importing fuel by next February.
The imported fuels will be marketed through gas stations operating under the G500 brand, a partnership between Grupo Gasolinero G500 and Glencore. The first of those stations opened today in Tlalnepantla, state of México.
The head of Glencore’s petroleum division said the billion-dollar investment will be primarily in infrastructure for fuel storage.
Half the investment has been allocated to the construction of two storage terminals, one in Dos Bocas, Tabasco, and the other in Tuxpan, Veracruz, and developing the network of G500 gas stations with its Mexican partners, said Alex Beard.
The other half of the money will go into storage and transportation opportunities identified by the company in the coming five years.
Beard said Mexico’s energy reforms offer “great opportunities” and that Glencore was excited by the prospects.
G500 president Alejandro Caballero said 200 Pemex stations will be rebranded to G500 by the end of this year and another 1,400 during 2018. Glencore and its Mexican partners will invest 2 billion pesos in that process.
G500 is looking beyond Mexico for future expansion. Caballero said the firm is looking for investors in the United States to open gas stations in the southern U.S. Central and South America and even Europe are in the Glencore-G500 sights.