Royal Dutch Shell said Wednesday it would invest $1 billion in Mexico over the next decade, after the oil giant opened its first retail gas service station in the country.
The investment in the world’s fifth-biggest consumer of gasoline depends on market conditions continuing to develop at their current rates, said Shell executive Istvan Kapitany.
The money is earmarked for “expanding and improving the retail network, improving fuel logistics infrastructure and developing partnerships” with Mexican consumers, said Kapitany, Shell’s Vice President of Retail.
Shell opened its first service station in the country on Tuesday, in the Mexico City suburb of Tlalnepantla.
The new service station will also offer freshly-brewed gourmet coffee, healthy fresh food and free Wi-Fi, reflecting Shell’s focus on delivering a world-class retail experience to customers.
Mexico reformed its energy sector in 2014, ending the monopoly of state company Pemex and allowing foreign retailers to operate in the country for the first time since 1938.
Shell Retail’s ambitions for 2025 include growing the convenience retail offer, significantly increasing the availability of low-emission fuels and reducing waste.
Pedro Joaquín Coldwell, Mexican Secretary of Energy welcomed Shell’s entry into Mexico’s burgeoning retail fuel market.
“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 at the opening ceremony.