Zenith Energy, a Houston-based international liquids and bulk terminaling company, has signed an agreement with Cemex to market and develop midstream assets in Mexico to support growing demand.

The agreement allows Zenith to use certain Cemex facilities and has been awarded the rights to develop such sites for fuel and LPG storage and distribution.

The facilities include more than 90 storage and distribution locations, both inland and on the coasts, most of which are connected to the railroad network. Zenith said development of the sites will not interfere with Cemex's day-to-day operations.

"Based on the advantaged 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," Jay Reynolds, Zenith's chief commercial officer said, according to a press release.

In December Mexico's energy regulatory commission (CRE) published the timetable for the liberalization of the country's fuel market, as a result of which the gasoline and diesel markets will transition from a sole supplier model, where state oil firm Pemex held the monopoly, to an open and competitive model in which private sector players can participate. Around US$2bn will be invested in fuel transport and storage and at least US$12bn in the area of fuel sales, according to the energy ministry (Sener).

And the CRE announced this week that it will migrate retail natural gas contracts away from Pemex, offering contracts for 70% of the total volume to private firms on a phase-by-phase basis from January 30.

Zenith owns and operates more than 15Mb of crude oil and petroleum products storage in Amsterdam, Ireland and Colombia, and is pursuing opportunities to buy, build and operate terminals primarily in Latin America, Europe and Africa, according to the release.

Source: BNAmericas - https://www.bnamericas.com/en/news/oilandgas/zenith-energy-to-develop-mexico-midstream-assets/