In what way did Valero adapt its business model to changes in the market?
Valero is a company fully committed to contributing to the energy security and storage capacity in the markets where we operate around the globe with a long-term vision. Mexico is not the exemption. The Mexican energy market has experienced more of an evolution than a transition, since the Energy Reform was enacted, and has continued to mature. Our business model is focused on the long term and the projects we are supporting in Mexico, together with strategic business partners, are part of that long-term plan for Mexico. Changes over the short term have not affected our business model and goals for the Mexican market.
How fundamental is the New Port of Veracruz project to your supply network?
The Veracruz Terminal is relevant for our strategy in Mexico. We look to contribute to the reliability of fuel supply and storage capacity with a robust logistics system in Mexico for our distributors and consumers. It is a key sign of our long-term commitment and trust in the Mexican market. This facility is one of eight projects we are supporting to have the necessary storage infrastructure and logistic footprint in the market. In the case of the Veracruz terminal, we partnered with IEnova, a strategic business partner for us. The New Port of Veracruz project will be fundamental for us in changing our supply system. While today we bring product in via rail directly from our refineries in Texas, we will move that supply chain now through the Port of Veracruz, which will become the entry point for several terminals being developed, two by IEnova in Puebla and the State of Mexico, a third one in Guadalajara, and a fourth terminal in Aguascalientes that we recently announced and will come online in late 2022. The Port of Veracruz terminal will have a capacity of 2 million barrels for gasoline, jet fuel, and diesel. Even if it is not the largest terminal we are involved with, considering we operate all over the world, it is one of the most sophisticated as we have applied a great deal of the knowledge, technology, and experience that has been developed over the years by our team and IEnova's. We are extremely excited about initiating operations at this location.
What is your perspective on the future of the energy sector in Mexico?
We are a refiner, a company that supplies world-class transportation fuel products to its clients and business partners in the Mexican market and contributes to the energy security and supply in the country. We believe there will always be a role for imported fuel in the country and we want to play in that space to contribute to the efforts of the government to increase the reliability and efficiency of supply to serve the different sectors of the Mexican economy. That efficiency in turn brings more competitive pricing, and that is where we are focused and how our efforts will contribute to increasing reliability and energy security in the country.
What sets Valero apart in this market and worldwide?
Valero is the largest independent refiner in the world. We produce 3.2 billion barrels of transportation fuels and we are heavily committed to running the most efficient and clean operations at our refineries. We have developed a refinery that produces a renewable diesel based on biomass, using animal fats and grease to produce it. We will triple or quadruple the capacity of that operation to help with the transitions into renewable fuels. Our focus and effort in Mexico, a priority market for us, is for the long term and to be able to contribute to Mexico's energy security. We are heavily focused on providing a reliable supply of world-class fuels at a competitive price.