Fuels

Shell Opens 1st Retail Site in Mexico

Plans to invest $1 billion in retail, fuel logistics over 10 years

MEXICO CITY -- Shell has opened its first retail location in Mexico, marking the beginning of a $1 billion, decade-long expansion plan.

The site, located in Tlalnepantla, outside of Mexico City, includes a convenience store with gourmet coffee and healthful fresh food offers, free Wi-Fi and Shell-branded fuel.

At a grand-opening ceremony, Pedro Joaquín Coldwell, Mexico’s secretary of energy, praised the latest addition to the country’s fueling network, which has seen new entrants such as Chevron, ExxonMobil, BP and Andeavor’s Arco brand over the last several months.

“The opening of fuel stations is important for Mexico, given that there are currently just 11,400 service stations, each serving an average of more than 3,000 vehicles a day,” he said.

Shell is planning more retail sites over the next few months. Assuming market conditions develop according to expectations, Shell plans to invest around $1 billion over the next 10 years on expanding its retail network, improving fueling-logistics infrastructure and developing business partnerships in Mexico.

“This is a major milestone for Shell and shows our ongoing commitment to Mexico,” said Istvan Kapitany, executive vice president of retail for London-based Royal Dutch Shell. “As the fifth-biggest consumer of gasoline in the world, it is an important and growing market.”

Shell has operated in Mexico for more than 60 years, but not in a retail capacity. Before Mexico began deregulating its fueling market in 2013, its state-owned oil company, Petroleos Mexicanos (Pemex), had a monopoly on fuel retail. Mexico is the latest of about 80 countries in which Shell operates its 43,000 retail locations. It is also investing in the high-growth markets of India, China, Indonesia and Brazil over the next decade. Shell has 14,000 dealer and distributor-owned and -operated branded sites in the United States.

Shell Retail’s plans for 2025 include growing its c-store network and the availability of “low-emission” fuels such as hydrogen, natural gas and electric-vehicle charging, as well as reducing waste.

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