MEXICO CITY--(BUSINESS WIRE)--Monterra Energy (“Monterra”) today provided an update on its plans to build a new refined products pipeline system, consisting of four independent assets: (i) a port facility to receive product, (ii) a 1,200,000 barrel marine receiving terminal at Tuxpan, Veracruz, (iii) a 270 km pipeline into central Mexico, and (iv) a 600,000 barrel offloading terminal near Tula, Hidalgo, all with state of the art measurement, SCADA and leak detection technology.
Monterra is pleased to announce that it has secured preferred, priority, 24/7/365 access to an existing 200 meter dock along the Pantepec River. The dock possesses an existing liquids hydrocarbon permit, making Monterra the only private company at present to control a facility with an existing permit at Tuxpan. The sheltered location along the river provides a strategic advantage to Monterra’s clients due to the possibility of significant and frequent weather delays at the current open water import locations in the Gulf of Mexico.
“With exclusive access to over 30 hectares of land at Tuxpan, a port facility with a hydrocarbon liquids permit, land near Tula, and 270 kilometers of pipeline right of way in-place, we are well positioned to develop the first private refined products pipeline made possible by the Mexican government’s energy reform,” said Monterra CEO Arturo Vivar.
Monterra successfully launched the first CRE approved Open Season for the pipeline portion of the Tuxpan to Tula refined products system on June 1st 2016. To date, Monterra has received interest in excess of 100,000 barrels per day of clean fuels including diesel, gasoline and jet fuel from both Mexican and international groups. In response to demand from key shippers in the market, Monterra has developed a competitive market rate for system access and use, as compared with other logistics alternatives.
In parallel, Monterra has agreed to indicative terms with multiple anchor clients both in Mexico and internationally that in aggregate represent sufficient demand to advance the project to the next stage. Over the coming weeks, Monterra will be working with clients to execute final documents and design each asset to the capacity and size required by the market. The formal permitting procedure with CRE and other regulatory bodies is expected to start this summer.
“We are pleased to be working with Mexican gasoline station groups as well as leading international traders and refiners to bring this project to fruition. These relationships will allow us to provide the best solution in an increasingly competitive market. We look forward to working closely with Pemex to ensure connectivity to existing infrastructure so that the addition of this new pipeline provides Mexico and its citizens with the infrastructure the country requires to support forecasted growth,” stated Monterra’s President Michael A. Williams.
“Mexico´s economic development is heavily dependent on competitive infrastructure for hydrocarbon products. Many industrial and commercial sectors across the country require reliable access to infrastructure in order to achieve their full potential and successfully compete both in Mexico and in the international markets. We are certain that the steps we have announced today contribute toward this goal and, therefore, we take great pride in announcing these important steps in our Tuxpan project,” said Monterra CEO Arturo Vivar.
About Monterra Energy
Monterra is an independent midstream company with an equity commitment from KKR, a leading global investment firm, to develop and acquire midstream infrastructure in Mexico. Monterra Energy was founded in 2014 by Arturo Vivar and Michael Williams to pursue select investment opportunities in the midstream sector in Mexico. Monterra is distinguished by a proven management team and highly experienced, local advisory board with success across North and South America in the areas of upstream, midstream and oilfield services. In May 2015, KKR made an equity commitment to Monterra for the development of new projects and acquisition of midstream assets and businesses.