Andeavor has announced plans to build a refined products terminal at the Rosarito storage facility of Comisión Federal de Electricidad (CFE).
As part of an agreement with CFEnergía, Andeavor will sign a long-term lease for the land and will build and operate the facility for $100 million.
The infrastructure is expected to reduce Andeavor's cost to directly import fuels into Baja California supporting its growing network of ARCO branded stations and other customers in northwest Mexico.
Greg Goff, chairman, president and CEO, says: 'The expansion of our branded business in Mexico allows s to further extend our integrated West Coast value chain into this attractive and high growth geography.
'This logistics project will further strengthen Andeavor's ability to cost effectively deliver petrol and diesel to our customers directly from our refineries on the West Coast.'
Redevelopment of the facility is expected to be compete in the next two years.
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