BP inks deal to utilize 50% of IEnova’s fuel terminal in Baja California
British Petroleum (BP) and Sempra Energy’s Mexican subsidiary IEnova announced the execution of a long-term contract for 50% of the initial capacity of a marine terminal which IEnova currently builds in La Jovita Energy Center, located 23 kilometers north of Ensenada, Baja California, northern Mexico.
This agreement will enable BP to store up to 500,000 barrels in the terminal to supply its growing network of service stations in the northern part of Baja California and Sonora. The financial terms of the agreement were not disclosed.
This network currently includes 54 gas stations, and it is expected to continue growing. BP is continuously evaluating options the Mexican market offers in order to continue its steady expansion plan to create a network of 1,500 service stations by 2021.
The remaining 50% of the capacity will be used by Chevron with whom IEnova has already signed another contract.
In April, IEnova announced Baja Refinados, a project to develop, construct, and operate a marine terminal that will receive, store, and deliver refined products, primarily gasoline and diesel. With an initial capacity of 1 million barrels, this terminal will increase Baja California’s energy reliability and will foster competitive prices for gasoline and other refined products in the region.
The use of the Baja Refinados terminal will allow BP to enhance supply options, improve logistics, and increase fuel delivery reliability for its service stations in Baja California and the northern part of Sonora, which will translate into benefits for consumers in the region.
Subject to the execution of certain agreements, BP will have the option to acquire up to 25% of the equity of the terminal once it is operational.
With an approximate investment of US$ 130 million U.S. dollars, Baja Refinados will generate around 600 jobs during construction. The terminal is expected to begin commercial operations in the second half of 2020.
IEnova, through its affiliates, will be responsible for all aspects of project implementation, including permitting, engineering, procurement, construction, financing, operations, and maintenance of the terminal.