Last week, President Andres Manuel Lopez Obrador has carried out the first stage of his plan against fuel theft in Mexico and has put into place measures to prevent it in the future. As part of his plan, he has announced the development of a Logistics Center for the Distribution and Transport of Hydrocarbons (Centro de Logística para la Distribución y Transporte de Petrolíferos). The ultimate goal of this entity is to reduce the theft of hydrocarbons and create a coordinated strategy between government entities.

This new decentralized division under the Ministry of Energy will manage the transportation of fuels throughout the country with technical, operational and management autonomy. It will be responsible for establishing and executing strategies to boost the efficiency of distribution, transport and storage activities as well as related services in order to secure and guarantee supply in Mexico.

The creation of this organism was fast tracked by the National Commission of Regulatory Improvement (Conamer) after it analyzed the extent of the regulatory impact it would have. Concamer decided to continue with the analysis as it would not generate any additional costs to the regulator and it was passed as an executive decree.

The current management of the national transport pipeline system is carried out by PEMEX Logistica. PEMEX’s current system consist of over 8,958km of polyducts, 1,485 tanks, 77 storage and distribution terminals and 15 marine terminals. The government will add 500 reserve fuel tanks to the current 1,468 in the next few days to compensate the shortage experienced a couple of days ago.

Along with the Ministry of Energy the entity will create policies for the sector, and lead all activities regarding the movement of hydrocarbons. The center will have a Director General to be named by the president and have advisors chosen by the Ministry of Energy and the Ministry of Finance.


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