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Market Chatter: Vitol to Operate Fuel Terminal in Mexico After 6 Years of Idling

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European commodity trader Vitol plans to operate the Rio Bravo fuel storage terminal in northern Mexico after leaving the facility idle since it was built six years ago, following a bribery scandal, Reuters reported Thursday, citing sources.

The company has reportedly held talks with Mexican officials and is seeking permits to operate the terminal on the US-Mexico border.

Reuters said it was unable to determine the stage of discussions. A document seen by the news agency showed that Vitol had sought third-party services in recent months for testing, certification, and documentation of terminal operations, to meet requirements for permit issuance.

Vitol did not immediately respond to' request for comment.

The Rio Bravo terminal reportedly consists of 12 tanks, with a combined storage capacity of 270,000 barrels. It is designed to receive fuel piped from a port facility in Brownsville, Texas.

The pipeline connection will allow Vitol to benefit from fixed pipeline tariff rates, a source told Reuters, particularly at this time when seaborne freight costs are surging due to the conflicts in the Middle East.

Vitol's move indicates its intention to re-establish its reputation in Mexico, where only a few foreign companies are allowed to run major energy infrastructure alongside state-owned Pemex, the news agency said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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