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This month, TFM S.A. de C.V. began moving liquid petroleum gas (LPG) in tank cars from an LPG terminal in Mont Belvieu, Texas, to a refinery outside Monterrey, Mexico.

Under a recently obtained PEMEX International contract, TFM will transport 1 million gallons of LPG per month. Depending on market conditions, the monthly LPG volume could expand up to five times if PEMEX decides to add other Mexican destinations.

The contract substantially reduces PEMEX's import and distribution costs, and is part of the shipper's strategy to integrate infrastructure along the U.S.-Mexico border, according to a prepared statement.