BP begins distribution of natural gas to industrial customers in Mexico

20 September, 2017

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BP Energia Mexico, BP’s natural gas marketing and trading arm in the country, announced today it has started to deliver approximately 200,000 million British thermal units (mmbtu) a day of natural gas to industrial users, local distribution companies and independent power producers in eight states in Mexico.

The move places BP as one of the first private companies to supply natural gas to the domestic market under the country’s energy reform.

The announcement comes after BP Energia Mexico was awarded pipeline transportation rights at an auction hosted earlier this year by CENAGAS, Mexico’s national center for natural gas control.

BP Energia Mexico has also executed a firm transport agreement with CENAGAS in addition to agreements with other transporters and local distribution companies in order to offer bundled services for delivery of natural gas.

Delivery has begun across eight states - Nuevo Leon, Coahuila, San Luis Potosi, Veracruz, Mexico State, Guanajuato, Tamaulipas and Queretaro.

“We see this as an important milestone in BP’s increasing involvement in and commitment to Mexico,” said in a statement Orlando Alvarez, CEO of BP Energy Company, BP’s North America energy marketing and trading group of which BP Energia Mexico is a part. “We intend to continue to grow our Mexican customer base and be a reliable supplier of natural gas into the country for many years to come.”

BP has invested in Mexico for more than 50 years, starting with marketing and distribution of Castrol. In December 2016, BP participated in Mexico’s first tender for deepwater licenses, winning interests in two exploration blocks in Cuenca Salina in the Southeast Basin.

In March BP opened its first fuels retail site in Mexico and plans to open around 1,500 sites across the country over the next five years.

“BP has a long history in Mexico and we are looking to continue to grow our presence here in line with the country’s energy reforms. Supplying natural gas is another step forward, building on our other businesses and bringing new offers to Mexico’s consumers as we seek opportunities across the energy sector,” added Chris Sladen, head of country for BP in Mexico.

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