Zenith Energy has signed an agreement with one of the largest companies in Mexico to market and develop existing logistics assets for oil storage and distribution in Mexico to support the growing demand for oil products.
The agreement provides for the use of certain facilities in Mexico of CEMEX, S.A.B. de C.V. ("CEMEX"), a global building materials company. Zenith has been awarded the rights to develop these sites for fuel and LPG storage and distribution. CEMEX's facilities in Mexico include more than 90 storage and distribution locations, in both inland and coastal cities, most of them connected to the Mexican railroad network, many with unit train capability and include both operational and dormant locations. The development of these sites will not interfere with CEMEX's normal business activities in Mexico.
"Based on the advantaged locations in major metropolitan areas and the customer demand for reliable operating facilities in Mexico, we believe that this solution will be very attractive to the market, particularly those looking for alternatives to uncertain and expensive pipeline projects," stated Jay Reynolds, Chief Commercial Officer of Zenith.
Jeffrey R. Armstrong, CEO of Zenith, commented, "We are excited to announce this initiative at this important time in Mexico's ongoing energy reform. We see a growing number of promising opportunities to invest in the country's developing midstream sector, particularly with the ability to utilize existing assets in key distribution markets inside the country."