Tesoro Corp., which will become known as Andeavor on August 1, has reached a definitive agreement with Petróleos Mexicanos (Pemex) for terminating and transportation services in Mexico.
The agreement will enable Tesoro to supply transportation fuels in the Mexican states of Sonora and Baja California.
In a statement Tesoro said it gained capacity in the open season for Northwest Mexico on the Pemex oil products pipeline and storage terminals. The now final agreement would allow Tesoro to shortly begin to move products in the country.
"The expansion of our strategic footprint to include Northern Mexico strengthens our integrated value chain with significant growth opportunities for our marketing business," Tesoro Chairman, President and CEO Greg Goff said.
Tesoro, which operates 10 U.S. refineries, noted that it expects to integrate supply to Mexico with its West Coast Refining and Logistics system and market products under the ARCO brand.