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Shell in Mexico

Shell has been present in Mexico since 1954. Shell has historically worked in Mexico in various downstream businesses. However, up until 2013, when the Energy Reform was enacted by President Peña Nieto’s administration, the scope for growth was limited. Today, Shell is analysing opportunities across the full value chain from Upstream to Downstream. Currently employing around 60 people in the Mexico City office, Shell is looking to expand its footprint by actively participating in Upstream bid rounds; midstream bid rounds and in the downstream sector with Retail operations. Shell has already announced its entry into the service station space in 2017, and is eager to compete both with company owned stations as well as franchised sites. Our certification and promotion of Mexican suppliers through Shell’s Mexico Sourcing Office, one of three strategic sourcing offices for Shell in the world, has given Shell clear competitive cost advantages and is poised to find more adequate supply solutions in Mexico.

Existing Business:

Trading

  • Shell Trading Evaluates potential infrastructure and market access opportunities, including gas trading/merchandising, origination and transport for CFE, PGPB and private entities.

Mexico Sourcing Office

  • The Mexico Sourcing Office (MSO) was launched on April 2011. MSO’s mission is to provide with a reliable pool of Mexican world class suppliers, which meet Shell’s standards in terms of HSSE, Quality, Technical specs, competitive total cost of ownership and service to Shell’s Upstream & Downstream Business

  • MSO role is to develop and deliver opportunities to reduce cost of supply from new sources. Aim: contribute to the development of Mexican suppliers and diversification of supply for Shell

  • In 2012 MSO signed a collaboration contract with ProMéxico, the government’s trade and investment arm

  • MSO is currently scouting reliable suppliers that can be used by Shell to comply with Local Content

  • MSO is a key player in various Shell projects across the world

Shell Picture8Criterion

  • Criterion is the world’s largest supplier of hydro-processing catalysts, providing superior catalysts and customized technical advice to refiners worldwide

  • Official distributor of Criterion in Mexico since 2011 – supply to Pemex refineries

Lubricants

  • Shell Lubricants in Mexico are distributed by Grupo Pochteca

Deer Park

  • In February 1993, Shell Oil Company and PMI Norteamerica, S.A. de C.V., a subsidiary of Petroleos Mexicanos (Pemex), formed a 50-50 partnership Deer Park Refining Limited Partnership (DPRLP)--and in March 2001 completed a $1 billion capital upgrade. The project improved DPRLP’s global competitiveness, operating efficiency and long-term economic viability while significantly reducing air emissions

  • Today, Shell Deer Park is home to the sixth largest refinery in the United States with a crude oil capacity of 327,000 barrels a day (42 gallons per barrel)

 

Shell Small BannerNew Opportunities:

Upstream

  • Since the implementation of the Energy Reform in Mexico, Shell has been an active and involved player, and will continue to evaluate future opportunities in the local market.

  • Shell remains interested in further opportunities as the bidding rounds continue. We have successfully prequalified for round 2.1 and look forward to the announcement of Round 2.4

Downstream

  • As of January 2016, there is a new Downstream team under Andres Cavallari’s leadership, exploring business opportunities in the downstream sector in Mexico (Retail and T&S). The Downstream team has a very ambitious agenda with the goal of establishing Shell’s first service station during 2017.

  • Shell Mexico pre-qualified for Round 1.1 of Pemex Logistics’ Open Season

Shell Mexico will follow closely and likely participate in the upcoming additional Pemex Logistics’ Open Season rounds. Also, we are interested and currently evaluating private infrastructure projects that have been approved by the Energy Regulatory Commission (CRE; acronym in Spanish).

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