Major US refiners are looking to enter Mexico’s gasoline market, a development that could benefit medium-range (MR) tanker demand in the coming years.

Market sources say Valero Energy has filed an application with Mexico’s energy regulators to build storage facilities. Along with two proposed inland facilities, one application is for storage of one million barrels of refined products at the Port of Altamira, on Mexico’s east coast.

The marine terminal could receive supplies from Valero refineries along the US Gulf and West coasts, as well as cargoes from its Pembroke Refinery in the UK.