Sempra Energy's Ienova unit, Valero sign contracts for liquid fuels project in Mexico

Source: Sempra Energy

Sempra Energy (NYSE: SRE) today announced that its Mexican subsidiary, Infraestructura Energética Nova, S.A.B. de C.V. (IEnova) (BMV: IENOVA), signed long-term contracts with 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.

 

SAN DIEGO, Aug. 3, 2017 – Sempra Energy (NYSE: SRE) today announced that its Mexican subsidiary, Infraestructura Energética Nova, S.A.B. de C.V. (IEnova) (BMV: IENOVA), signed long-term contracts with 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.

The three liquid fuels projects represent an estimated capital investment of U.S. $275 million. These facilities are IEnova’s first ventures in Mexico’s emerging $10 billion liquids market.

“These projects will lay a solid foundation for us to expand this new business line into additional terminal opportunities and liquids transportation investments,” said Joseph A. Householder, corporate group president of infrastructure businesses for Sempra Energy. “We plan to continue to build our strategic relationships as projects such as these fit IEnova’s and Sempra Energy’s core competencies.”

The 20-year concession agreement with the Port Authority of Veracruz awarded last month to develop, construct and operate a receipt, storage and send-out liquid fuels marine terminal also was signed today.

The Veracruz terminal will have a capacity of 1.4 million barrels of gasoline, diesel and jet fuel to supply the central region of Mexico. The two storage terminals to be built and operated by IEnova in Puebla and Mexico City will have initial storage capacities of approximately 500,000 barrels and 800,000 barrels, respectively.

IEnova will be responsible for the implementation of the projects, including permitting, engineering, procurement, construction, maintenance, financing and operations. IEnova expects the two inland storage terminals to be put in service in 2019, and the marine terminal, at the end of 2018.

After commercial operations, and subject to all relevant regulatory and corporate authorizations, as well as the approval of the Port Authority of Veracruz, Valero will have the option to acquire 50 percent of the equity in all three assets.

Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2016 revenues of more than $10 billion. The Sempra Energy companies' more than 16,000 employees serve approximately 32 million consumers worldwide.

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