Tesoro’s Arco Brand Launching in Mexico

Refiner to debut fuel brand in Sonora and Baja California

SAN ANTONIO -- Tesoro Corp. is the latest refiner to enter the newly deregulated Mexican fuel market.

The company has reached a definitive agreement for Professional Fuels Solutions S.A. de C.V. (ProFuels) to supply fuel and introduce the Arco brand in the Mexican states of Sonora and Baja California. The first Arco branded sites should open within the next 60 days.

ProFuels operates gas stations and has distributed fuel in northwest Mexico since 1991. Tesoro is planning to integrate supply to Mexico through its West Coast refining, marketing and logistics system, and for the Arco brand to become a market leader in Baja California and Sonora. 

Tesoro also signed a definitive agreement with Petroleos Mexicanos (Pemex) for terminaling and transportation services in Mexico, which will enable it to supply fuels in Sonora and Baja California. The refiner had gotten capacity this summer on Pemex’s oil products pipeline and storage terminals for northwest Mexico.

"We are very excited to begin operations in Mexico and to launch the Arco brand. This agreement furthers our strategic marketing integration and presents a tremendous opportunity to offer a high-quality fuel in a growing market," said Greg Goff, chairman, president and CEO of Tesoro.

The refiner joins ExxonMobil and BP, which both entered the Mexican fuel market in 2017.

San Antonio-based Tesoro will be renamed Andeavor this August following its 2017 acquisition of Western Refining. It operates 10 refineries in the western United States with a combined capacity of approximately 1.2 million barrels per day. It also owns a logistics business with an interest in Tesoro Logistics LP and Western Refining Logistics LP and ownership of their general partners. Its retail marketing network includes 3,000 sites marketed under brands such as Arco, SuperAmerica, Shell, Exxon, Mobil, Conoco, Tesoro, USA Gasoline and Giant.

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