Monterra Energy to Build Mexican Pipeline

May 2016, Vol. 243, No. 5

Monterra Energy is planning a refined products pipeline to improve efficiency and competition in central Mexico. The midstream company said it has an equity commitment from KKR, a global investment firm specializing in the development and acquisition of midstream infrastructure in Mexico.

The project will address critical infrastructure needs to transport imported refined products from the port of Tuxpan, Veracruz, into central Mexico near Tula, Hidalgo. The 18-inch pipeline will have a capacity of 165,000 bpd.

Monterra has access to an existing right-of-way that will expedite development and construction and allow an early commercial operation date. Monterra will anchor the project with two industry leaders – Mexican gas station consortium G500 and an unnamed global commodities merchant – which together will account for 100,000 bpd of initial throughput.

The company will soon launch an open season for the remaining capacity.

“Thanks to the historic energy reforms instituted by President Enrique Peña Nieto, Monterra and our Mexican partners are able to make investments that will ultimately enable Mexican citizens to have a choice in fuels while benefitting the Mexican economy with private investment in new infrastructure,” said Arturo Vivar, CEO of Monterra Energy.

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