Proentek Energy Development Company
Proentek Energy Development Company, hereinafter referred to as “Proentek”, was formed as a Limited Liability Company in September 2017 in Houston, TX by Proentek, LLC and Redstone Business Holdings LLC in response to the following market conditions:
- There is currently a limited capacity for fuel storage in Mexico and there are tremendous opportunities to serve the energy market, specifically for the storage of hydrocarbons, utilizing a tank storage facility.
- With the deregulation of the National Oil Company and the Commission for Energy Regulation of Mexico, there is now a need for private companies to enter the market promoting efficient infrastructure and distribution as well as sound financial methods and pricing in these overlooked and underserved markets.
Our plan is to build a state of the art storage tank facility in Mexico with a capacity of 1,000,000 barrels which will be fully operational within 19 months from receiving investment capital. It is our goal to serve neglected small to midsize businesses that are currently not able to purchase fuel storage or are not able to purchase enough capacity for their business.
Ongoin Storage Agreements
We have several customers (i.e. fuel distributors and end users) who are ready to sign long term leasing agreement with our facility once the investment is in place.
Tank Storage Facility
The proposed terminal is designed to store diesel, gasoline, turbosine, and ethanol but they will also have the flexibility in the long term to meet the distribution needs of biofuels or a mixture as determined by environmental and safety regulations. It is our intention to construct an initial Fuel Tank Storage Facility with a capacity of 1,000,000 barrels on site while leaving room to expand with the construction of additional storage facilities in Mexico and around the world.
Our proposed facility will bring increased storage capacity to an area that has been underserved and beholden to the national state-owned provider. The presence of our storage tank facility and the increased capacity in the market will lead to competition which will spur fuel price reduction and an overall increase in imported fuel quality. This will contribute to the overall market growth in the area and financial sustainability for this project over the long term.
In order to ensure that the customer’s fuel will be transported and stored with all the guarantees necessary to maintain quality standards and performance as required and utilized by our customers, we will use the following storage and transport methods:
- Cold Storage
- Storage in separate tanks for E-10 fuel (Gasoline with 10% Ethanol)
- Day and Night Delivery
- Shipments within a week
- Transport in trucks and pipes of 40 and 60 thousand liters
In order for our tank storage facility to be logistically beneficial, we have worked to identify the most centrally positioned locations to our largest potential customer base. Our preliminary analysis to locate the best area for our facility was made considering that the primary market would be Mexico City and the surrounding area. Experts view the Mexico City market as a prime opportunity for private businesses to enter after the deregulation of the National Oil Company and the Commission for Energy Regulation of Mexico. The market and location also has availability of land and physical space next to the ports, which makes reaching the locations economically and logistically viable.
Overall, the proposed facilities would be in a position to provide two (2) types of services that would address the issue of current low supply of fuel storage in the market and are as follows
Storage capacity of fuel available to rent to both, The Estate Owned Company and the Private sector.
Fuel distribution through a fleet of tank trucks and/or by rail to both large and medium consumers.
Licenses and Permits
After the appropriate licenses and storage permits are obtained, the commercialization and distribution of fuel will be authorized for a term of one (1) year renewable each year for 25 years which is considered the useful lifetime for this type of installation.
Our experience and knowledge is unique in the market and we expect to make advances that will inspire competitors to develop and offer similar services that will benefit the customer. Our plan to address the current challenge will include the following:
- Hiring of qualified personnel that will maintain, manage and provide security for the facility
- Continuous training and education of staff
- Regular investment of preventive and / or corrective maintenance
- A safe facility including all necessary measures for security