IEnova, Valero ink US$ 275 million deal to supply liquid fuels in central Mexico
Warning: foreach() argument must be of type array|object, bool given in /home/mexiconow/public_html/sites/mexiconow/wp-content/themes/mexiconowwpnew/single.php on line 253
Sempra Energy’s Mexican subsidiary Infraestructura Energética Nova, S.A.B. de C.V. (IEnova) has signed long-term contracts with Valero Marketing and Supply de México SA de CV, a subsidiary of Valero Energy Corp., for the storage capacity of the liquid fuels marine terminal to be constructed in Veracruz and two inland storage facilities to be constructed in Puebla and Mexico City.
Such premises will allow Valero to supply gasoline, diesel and jet fuel to thousands of new customers in Mexico’s central region. The three liquid fuels projects represent an estimated capital investment of US$ 275 million. These facilities are IEnova's first ventures in Mexico's emerging liquid market estimated in US$ 10 billion.
Under the deal, IEnova will invest US$ 155 million to build a marine terminal with 1.4 million barrels of storage capacity in the Port of Veracruz, and another $120 million to build a 500,000-barrel storage terminal near the Central Mexican city of Puebla and a storage terminal outside Mexico City with 800,000 barrels of capacity.
The marine terminal in Veracruz is expected to begin operations by the end of 2018, with the two inland terminals serving customers in early 2019. Valero will also have an option to acquire a 50% interest in each of the terminals.
IEnova won a July 12 bid with the Port Authority of Veracruz for a 20-year lease to build and operate a new marine terminal. The company just finalized the concession agreement for the terminal, allowing the supply deal with Valero to move forward.
Valero CEO Joe Gorder said in a statement that historic energy reforms made it possible for the San Antonio-based refining company to ship its products directly into Mexico for distribution and branded sales.
"As we continue to evaluate ways to further engage in Mexico, we look forward to discussing opportunities with Pemex that advance our respective strategic objectives, as well as discussing supply arrangements with independent retail operators," Gorder said in his statement, referring to Mexico's national oil company, Petroleos Mexicanos.