Energy infrastructure developer IEnova, a subsidiary of a Sempra Energy Company, announced plans to invest US$ 130 million in order to develop, to construct and to operate a marine terminal that will receive, store, and deliver hydrocarbons, primarily gasoline and diesel, within the La Jovita Energy, located 14.3 miles (23 km) north of Ensenada, Baja California, Mexico.
The project called Baja Refinados will enhance supply options, improve logistics, and increase refined product supply reliability in Baja California.
Baja Refinados is IEnova’s fourth refined product terminal in Mexico and is expected to generate around 600 jobs during construction. The facilities are scheduled 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.
The company also signed a long-term contract with Chevron Combustibles de México S. de R.L. de C.V. for the storage and delivery of hydrocarbons, primarily gasoline and diesel.
The agreement will allow Chevron Combustibles de México S. de R.L. de C.V. to utilize approximately 50% of the terminal’s storage capacity. Additionally, another subsidiary of Chevron will have the right to acquire 20% of the equity of the terminal after commercial operations begin. The financial terms of said agreement were not disclosed.
Chevron Combustibles de México S. de R.L. de C.V. is a subsidiary of Chevron Corporation, which is one of the largest refiners on the west coast of the U.S.
The Baja Refinados Terminal will allow Chevron to supply its growing network of Chevron fuel retail stations in Baja California, as well as commercial and industrial consumers.