BP Energia Mexico, the natural gas trading and marketing unit of BP in Mexico has begun supplying natural gas to the country. Initially eight states in Mexico will be beneficiaries of this move and they include customers ranging from independent power producers, local distribution firms and industrial users.
“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,” said the chief executive officer of BP Energy Company, Orlando Alvarez.
Pipeline transportation rights
The eight states which are being supplied with natural gas by BP Energia Mexico include Queretaro, Tamaulipas, Guanajuato, Mexico State, Veracruz, San Luis Potosi, Coahuila and Nuevo Leon. BP joins other foreign oil companies such as Royal Dutch Shell and Tesoro Corporation which are already operating in Mexico.
Earlier in the year pipeline transportation rights had been awarded to BP at an auction by CENAGAS – the body charged with the control of natural gas in Mexico. Other than agreements with local distribution firms and other transports, BP and CENAGAS have also entered into a transport agreement which see the British oil giant offer package deals related to delivering natural gas.
In Mexico BP has had a presence of more than fifty years. The oil company started out with the distribution and marketing of Castrol line of products. BP’s first time to take part in Mexico’s deepwater licenses’ tender was last year in December when the oil giant managed to win the rights to explore blocks located in Cuenca Salina. Earlier in the year BP unveiled a fuel retail outlet in the country. In the course of the next half a decade BP plans to launch around 1,500 fuel retail sites in Mexico.
In the recent BP and other co-venturers signed a production sharing agreement that has been modified and restated to extend the deal until 2049. Previously the deal was expected to end in the next seven years. BP’s co-venturers in the deal include ExxonMobil, Statoil and Chevron.
Following a recent appraisal of BP’s exploration portfolio the oil major is now refocusing growth on advantaged oil and natural gas in places where the firm has operations. At the same BP is eyeing new production regions as it abandons exploration prospects that are less competitive. These initiatives are expected to offer the oil major sustainable and growing free cashflows.