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BP starts delivering natural gas in Mexico

EBR Staff Writer Published 20 September 2017

BP’s Mexican natural gas marketing and trading subsidiary BP Energía México has started the delivery of about 200,000 mmbtu/d of natural gas in the country.

The natural gas is being delivered to industrial users, local distribution companies and independent power producers across eight states in Mexico. This is claimed to have made BP one of the first private companies to supply natural gas to domestic market under the country’s energy reform measures.

BP’s new move comes after its subsidiary received the rights for pipeline transportation at an auction held last year by CENAGAS, the country’s national center for natural gas control.

BP Energía México has also entered into a firm transport agreement with CENAGAS and other transporters and local distribution companies to offer bundled services for delivery of the natural gas.

It has started delivery across eight states including Nuevo Leon, Coahuila, San Luis Potosi, Veracruz, Mexico State, Guanajuato, Tamaulipas and Queretaro.

BP Energy Company CEO Orlando Alvarez said: “We see this as an important milestone in BP’s increasing involvement in and commitment to Mexico.

“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.”

The company claims to have invested for more than 50 years in the country, starting with marketing and distribution of Castrol. Last year, the company participated in Mexico’s first tender for deepwater licences and secured interests in two exploration blocks in Cuenca Salina in the Southeast Basin. 

In March, it opened its first fuels retail site in the country and has plans to open 1500 more sites across the country in the next five years.

BP Mexico country head Chris Sladen said: “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.”