IEnova and Valero have signed capacity contracts for a refined products storage terminal in the Port Veracruz, Mexico.
In July, IEnova won a bid for a 20-year concession to build and operate a $155 million marine terminal for the receipt, storage and delivery of refined products.
The company has since executed the agreement, which includes the transfer of the waterfront lot where the terminal will be built, by the end of 2017.
Additionally, IEnova will build and operate two storage terminals that will be located near Puebla and Mexico City and will have initial storage capacities of 500,000 and 800,000 barrels respectively. The capacity of both these terminals has also been contracted with Valero.
The global project, including the marine terminal and two in-land terminals, represents a $275 million investment.
Valero plans to import refined products including petrol, diesel and jet fuel, and store them at the Veracruz Marine Terminal. These products will then be distributed by truck and transported to Puebla and Mexico City by rail.
In a statement IEnova says these assets will contribute to the reliability of supply of refined products in central Mexico.
IEnova will be responsible for the implementation of the projects. The two in-land terminals will start operations during 2019 and the marine terminal in Veracruz at the end of 2018.
Carlos Ruiz Sacristán, CEO and chairman of the board of IEnova, says: 'Mexico will require important investments in the transportation and storage of refined products in the next years, and IEnova is ideally positioned to become a leader.'
Joe Gorder, Valero's chairman, president and CEO, adds: 'With the recent constitutional reform, it is now possible for Valero to import refined products directly into Mexico for further distribution, including branded sales. This transaction will enable us to extend our supply chain to efficiently supply petrol, diesel and jet fuel to the growing Mexican market.'
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