Petroleos Mexicanos is in advanced talks to buy KKR & Co.’s Monterra Energy fuel-storage terminal in Tuxpan, Veracruz, in one of the latest blows to Mexican energy liberalization that ushered in a wave of foreign investment.

Pemex, as the state oil company is known, is planning to pay $320 million for the 2.2 million-barrel import terminal, according to two people with knowledge of the situation who asked to remain anonymous because the talks are private. A Monterra representative declined to comment; Pemex didn’t immediately respond to an emailed inquiry. 

Houston-based Monterra Energy was founded by KKR to invest in Mexico’s fuel sector following the 2013 and 2014 energy reforms that opened the sector to private capital. Yet it has faced regulatory obstacles under nationalist President Andres Manuel Lopez Obrador, who has sought to rein in the energy reforms of his predecessor and return much of the industry to government-owned entities Pemex and CFE. 

The terminal was shut by regulators for almost a year after a surprise 2021 inspection. 

In February 2022, Monterra Energy threatened legal action and estimated damages as high as $667 million, alleging the action violated the international free trade agreement known as USMCA.