NEW YORK (Reuters) – Koch Supply & Trading Mexico (KMEX) booked an 85,000-barrel diesel fuel waterborne cargo to be supplied to Mexico in early December as it seeks to expand its presence in Mexico’s recently opened energy market.
The CROWN II, a medium-range vessel, has been fixed and the private shipment will originate in the U.S. Gulf Coast, said Eduardo Andrade, trading manager at KMEX.
Koch Mexico has been selling diesel to the domestic market in Mexico since truck-loading operations began in October.
KMEX will continue waterborne deliveries on a routine basis and they expect the frequency to increase as their market share grows.
The cargo is headed to the Veracruz facility owned and operated by Vopak Mexico.
Mexico passed sweeping energy reform in 2013-14 that ended state oil firm Pemex’s decades-long monopoly, opening up the market to large refining and trading companies.
U.S. energy company Chevron Corp and trading firm Glencore in August announced plans to enter Mexico’s fuel market. Glencore expects to start importing fuel for Mexico’s domestic market in February 2018 through its own terminal in the southern state of Tabasco.
U.S. refiners, including Valero Energy Corp and Andeavor, formerly known as Tesoro Corp, have also announced plans to participate in Mexico’s fuel market.