Monterra Energy plans to build a refined products pipeline to improve efficiency and competition in Central Mexico. Monterra is an independent midstream company that has an equity commitment from KKR, a global investment firm, and specializes in the development and acquisition of midstream infrastructure in Mexico.
The pipeline announced March 17 will address critical infrastructure needs to transport imported refined products from the port of Tuxpan, Veracruz, into Central Mexico near Tula, Hidalgo. This private pipeline investment will be made possible by the Mexican energy reforms. Mexican consumers will benefit from a more efficient and competitive market with both domestic and imported fuels.
The pipeline will be 18 inches in diameter with a capacity of up to 165,000 barrels per day. Monterra has access to an existing right-of-way that will expedite development and construction and allow an early commercial operation date.
Monterra will anchor the project with Mexican gas station consortium G500, as well as a global commodities merchant, which together will account for a portion of the project’s initial throughput volume of 100,000 barrels per day. Monterra will launch an open season this month for the remaining capacity.