Royal Dutch Shell (LON:RDSA) has opened its first service station in Mexico, the Anglo-Dutch oil major has said. The move marks the start of the group’s expansion plan which will see it invest $1 billion in the country over the coming decade.
Shell’s share price has been subdued in London this morning, having given up 0.84 percent to 2,112.50p as of 09:32 BST, marginally underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.43 percent in the red at 7,341.28 points. The oil major’s shares have added more than 13 percent to their value over the past year, but are down by nearly six percent in the year-to-date.
Shell said in an emailed statement this morning that it had opened its first service station in Mexico, with more sites due to start over the next few months. If market conditions continue to develop at their current rates, the Anglo-Dutch group plans to invest around $1 billion in the country over the next 10 years. These investments will be channelled into expanding and improving the retail network, improving fuel logistics infrastructure and developing partnerships.
“This is a major milestone for Shell and shows our ongoing commitment to Mexico. As the fifth-biggest consumer of gasoline in the world, it is an important and growing market,” István Kapitány, Shell Executive Vice President of Retail, commented in the statement.
The company added that in addition to Mexico, it was also investing in several other high-growth markets, including India, China, Indonesia and Brazil, as part of its expansion strategy for the next decade.
Shell’s move comes after earlier this year, blue-chip peer BP (LON:BP) unveiled plans to open 1,500 new service stations across Mexico over the next five years, marking the first time an international oil major has sought a foothold in the country’s newly-liberalised fuel sector.