Mexico’s growing fuels market took the spotlight during a binational meeting hosted by Texas Gov. Greg Abbott to discuss new business opportunities in the energy sector.
Abbott hosted Mexican Ambassador to the U.S. Geronimo Gutierrez-Fernandez and Petroleos Mexicanos CEO Jose Antonio Gonzalez-Anaya at a Monday evening dinner with executives from Texas-based energy companies at the Governor’s mansion.
The Mexican delegation met with executives from Valero Energy Corp. (NYSE: VLO), NuStar Energy LP (NYSE: NS), Energy Transfer Partners LP (NYSE: ETP), Parsley Energy Inc. (NYSE: PE), Hunt Oil Company Inc. and Howard Midstream Energy Partners LLC.
Valero, NuStar and Howard Energy Partners were among the five companies recently featured in a Business Journal cover story that documented opportunities in Mexico’s growing fuels market. Mexico now imports 60 percent of its gasoline and about half of its diesel. That is creating large business opportunities in the energy sector.
“We appreciate Gov. Abbott’s continuing efforts to promote dialogue regarding the potential for future business opportunities between Texas and Mexico,” NuStar Energy CEO Brad Barron said in a statement.
Texas Secretary of State Rolando Pablos served as an organizer for the event and told the Business Journal that it marked the second time Gov. Abbott that has hosted a delegation from Mexico’s national oil company, which more commonly known as Pemex.
Most the conversation centered around the cross-border trade of energy and creating what Pablos calls the “Texas-Mexico Energy Nexus.”
“Texas has both the capital and skill set to offer to Mexico as it seeks to develop its energy infrastructure and as Mexico seeks to modernize its facilities,” Pablos said. “Texas is the right partner — the best partner — as it seeks to take its energy infrastructure to the next level.”
Pablos said business leaders in attendance represented the “cutting edge” of the growing cross-border energy trade — with companies from the Alamo City at the top of the list.
“San Antonio is making name for itself in this space,” Pablos said. “Geographically, it’s very well situated. You’re seeing some true leadership come out of San Antonio in the oil and gas sector that I’ve never seen before.”
Monday evening’s event carried over into a Tuesday morning meeting of the Texas Department of Transportation’s Border Trade Advisory Committee where Pablos, Hunt Mexico President Enrique Marroquin, Pemex executive Regina Garcia-Cuellar and Texas Railroad Commissioner Ryan Sitton lead a panel discussion on the growing cross-border energy trade.
“If you look at the energy infrastructure development map of Mexico, it’s wide open for development,” Pablos said. “What I want to do — and the governor does too — is spread the word in Texas is that there are opportunities to invest and do business with Mexico in the energy sector.”
Railroad Commissioner Ryan Sitton spoke about how a growing number producers in the Eagle Ford Shale and Permian Basin are able to supply new customers in Mexico with natural gas, crude oil and refined products.
“Mexico’s energy reforms and demand coupled with near historic highs in U.S. production are creating an enormous opportunity from which both countries will benefit,” Sitton said.
