Monterra Energy provided an update on its plans to build a new refined products pipeline system, consisting of four independent assets: (i) a port facility to receive product, (ii) a 1,200,000 barrel marine receiving terminal at Tuxpan, Veracruz, (iii) a 168-mile pipeline into central Mexico, and (iv) a 600,000 barrel offloading terminal near Tula, Hidalgo, all with state of the art measurement, SCADA and leak detection technology.
Monterra has secured preferred, priority, 24/7/365 access to an existing 200 meter dock along the Pantepec River. The dock possesses an existing liquids hydrocarbon permit, making Monterra the only private company at present to control a facility with an existing permit at Tuxpan. The sheltered location along the river provides a strategic advantage to Monterra’s clients due to the possibility of significant and frequent weather delays at the current open water import locations in the Gulf of Mexico.
Monterra successfully launched the first CRE approved Open Season for the pipeline portion of the Tuxpan to Tula refined products system on June 1st 2016. To date, Monterra has received interest in excess of 100,000 barrels per day of clean fuels including diesel, gasoline and jet fuel from both Mexican and international groups. In response to demand from key shippers in the market, Monterra has developed a competitive market rate for system access and use, as compared with other logistics alternatives.
In parallel, Monterra has agreed to indicative terms with multiple anchor clients both in Mexico and internationally that in aggregate represent sufficient demand to advance the project to the next stage. Over the coming weeks, Monterra will be working with clients to execute final documents and design each asset to the capacity and size required by the market. The formal permitting procedure with CRE and other regulatory bodies is expected to start this summer.