Exxon Mobil Corporation (NYSE:XOM) sees opportunities in the Mexican gasoline market and the U.S. oil giant is looking to open its own gas stations in the country.
Two days ago, the company announced that it will invest $300 million to build Mobil-branded stations in Mexico. It plans to spend money on fuels logistics, product inventories, and marketing over the next 10 years.
Mexico is Latin America’s second biggest economy with around 11,400 gas stations. According to the country’s energy minister, it is the world’s fourth biggest gasoline market.
“Recent energy reforms present a unique opportunity to help meet the growing demand for reliable fuel supplies and quality service in Mexico,” stated Martin Proske, Mexico fuels director for ExxonMobil Fuels, Lubricants & Specialties Marketing Company. “ExxonMobil’s presence will help give consumers new choices to purchase our high-quality products.”
Exxon Mobil expects to open its first station in central Mexico in the second half of 2017. The petroleum giant plans to open additional stations later in the year. It did not disclose how many stations it plans to open in the country.
Exxon Mobil Corporation (NYSE:XOM) looks to introduce its new line of advanced Synergy gasoline and diesel fuels in Mexico. The fuels will be marketed as Mobil Synergy Extra, Mobil Synergy Supreme+ and Mobil Synergy Diesel in the country.
According to U.S. oil giant, it will implement its Guaranteed Fuels program in the country. The program is designed to ensure that fuel dispensers at its Mobil-branded service station are secure and operating correctly. The company’s traveling laboratories periodically visit the stations to analyze the quality of the fuel.
In addition to Exxon Mobil, the Mexican gasoline market is also an attractive market for other oil companies including BP plc and Royal Dutch Shell. BP expects to open 200 locations this year and 1,500 within five years in the country, while Shell is reportedly planning to open its first gas station in the country this year.
Meanwhile, shares of Exxon Mobil Corporation (NYSE:XOM) closed down 0.32%. The stock is down over 9% so far this year.