Glencore has entered into an agreement with Corporacion G500 SAPI (G500) to create a franchise platform, to be known as G500 Network, which will service over 1,400 affiliated service stations in Mexico.
Formed in 2014, G500 is an association of service station owners, established in response to the deregulation of Mexico's petroleum industry. G500 currently sells around 160kbd of gasoline and diesel. It has a nationwide presence with a strong focus in central Mexico and represents around 12% of Mexico's service stations.
Working in partnership, the fuels retail franchise created by Glencore and G500's joint venture will be implemented at affiliated service stations and will include fuel supply, branding and ancillary retail services. It will be rolled out in line with the liberalisation of retail prices in Mexico.
This new era of the Mexican oil market provides an opportunity for Glencore to build upon its long-standing history as a supplier of petroleum products. In addition, we look forward to developing domestic logistics in support of Mexico's energy reform.
Alex Beard, Head of Glencore Oil, said "This is an exciting opportunity for Glencore to build on our existing commitment to the Mexican oil sector. Our partnership with G500 expands our presence into downstream and retail businesses; a natural fit with our global supply capabilities."
Antonio Caballero Fernandez, President of G500, noted "This partnership is creating an innovative franchise that will improve competition, product quality and services for the Mexican consumer. The creation of G500 Network is a result of the national energy reform and our vision for international growth."