The Federal Economic Competition Commission (Cofece) of Mexico authorized certain storage services to Grupo Karzogas.

On September 15, 2020, Operadora y Administradora de Gasolineras de Matamoros (OAGM); Distribuidora de Combustibles Karzo (DCK) and KRZ PAAD Fuel Terminal (KRZ) requested the opinion of Cofece in terms of article 83 of the Hydrocarbons Law, regarding the storage permits for open access petroleum products and the commercialization of petroleum products, of which the Applicants are holders, and the shareholding in common that exists between these economic agents Request for opinion).

For the purposes of this resolution, this group of companies calls itself «Grupo Karzogas«.

The KRZ open access storage permit for oil products corresponds to a facility to be built in Matamoros, Tamaulipas, with a total design capacity of 60,000 bmTiles and an operating capacity of 48,000 barrels; made up of six tanks and equipment for the receipt of fuels by tank car, with its respective measuring skid (TARMATAMOROS).

The delivery will be in tank cars, in four filling positions, according to information from Cofece.

The KRZ open access storage permit for oil products corresponds to a facility to be built in Matamoros, Tamaulipas, with a total design capacity of sixty thousand (60,000) bmTiles and an operating capacity of forty-eight thousand (48,000) barrels; composed of six (6) tanks and equipment for the reception of fuels by tank car, with its respective measuring skid (TARMATAMOROS). The delivery will be in tank cars, in four filling positions.

Applicants are holders of the following permits:

• DCK. Permission to commercialize gasoline and diesel number H/19983/COM/2017.
• OAGM. Permission to commercialize regular gasoline and diesel number H/23321/COM/2020.
• KRZ. Storage permit number PL/23432/ALM/2020, for a regular gasoline and diesel storage facility in the municipality of Matamoros, Tamaulipas.

Additionally, DCK is the holder of permits for the sale of gasoline and diesel to the public through service stations in Matamoros, Tamaulipas.

Cofece

In accordance with Mexican legislation, the Energy Regulatory Commission, with the opinion of Cofece, will establish the provisions to which the Transport, Storage, Distribution, Public Sales and Commercialization of Hydrocarbons, Petroleum and Petrochemicals must be subject, as well as as users of said products and services, in order to promote the efficient development of competitive markets in these sectors.

Among other aspects, said provisions may establish the strict legal separation between the permitted activities or the functional, operational and accounting separation thereof; the issuance of codes of conduct, limits to participation in the capital stock, as well as the maximum participation that economic agents may have in the commercialization market and, where appropriate, in the reserve of capacity in the Transportation and Storage facilities.